What is the correct sequence of events when a government subsidy is introduced in a market?

When a government introduces a subsidy, it provides financial support to businesses or consumers to encourage specific activities, like producing more of a product. This subsidy lowers the cost for producers, allowing them to sell their goods at a lower price. As a result, the supply of that product increases because more businesses can afford to produce it, leading to greater availability in the market. For example, if the government gives farmers a subsidy for growing corn, they may plant more corn and sell it at a cheaper price, which can lead to increased consumption. Overall, this sequence usually results in higher supply, lower prices, and potentially increased demand for the subsidized product.