How do government subsidies typically affect the supply and demand in a market?

Government subsidies are financial support from the government to help businesses or individuals. When a government gives subsidies to a particular industry, it lowers the costs for producers. This means that those producers can supply more goods at a lower price, which often leads to an increase in the overall supply in the market. For example, if the government subsidizes farmers, they can grow more crops and sell them for less money, making food cheaper for consumers. As a result, the increased supply can lead to higher demand, as more people are willing to buy the products at lower prices.