How can government intervention through subsidies help reduce the consumption of demerit goods in the context of fiscal policy?

Government intervention through subsidies can help reduce the consumption of demerit goods by making healthier or more beneficial alternatives more affordable. Demerit goods, like tobacco or junk food, are often harmful to individuals and society. By providing financial support to healthier options, such as fruits and vegetables, the government can encourage people to choose these better alternatives instead. For example, if a government subsidizes the price of fresh produce, families might buy more fruits and vegetables instead of unhealthy snacks. This shift not only helps improve public health but also reduces the negative effects associated with the consumption of demerit goods.