What is the likely effect of a government subsidy on the market equilibrium for a good?

A government subsidy is financial support given to help reduce the cost of a good or service. When a subsidy is provided, it usually lowers the price that consumers pay for that good, making it more attractive to buy. As a result, the demand for that good often increases because more people can afford it. For example, if the government gives farmers a subsidy for growing corn, the price of corn might drop, leading more people to purchase corn products like tortillas or corn syrup. This increase in demand can shift the market equilibrium point, meaning that the quantity of corn sold will rise, and the market will adjust to the new price level.