A »Government subsidies typically lower production costs, allowing suppliers to offer goods at lower prices, which can lead to a decrease in the market's equilibrium price. Conversely, tariffs increase the cost of imported goods, making them more expensive for consumers and potentially raising the equilibrium price. For example, a subsidy on corn production can reduce corn prices, while tariffs on steel may increase the cost of goods requiring steel.

A »Government subsidies lower production costs, shifting supply right and decreasing equilibrium price. Tariffs increase production costs for imported goods, shifting supply left and increasing equilibrium price. Both policies alter market equilibrium, with subsidies decreasing and tariffs increasing the price consumers pay.