How taxes and subsidies differ in their effect on the market price and quantity of a good?

Taxes generally increase the cost of production or consumption, leading to higher market prices and a reduction in the quantity of the good sold, as producers may supply less due to decreased profit margins. In contrast, subsidies lower production costs, which can decrease market prices and encourage higher quantities sold, as producers are incentivized to supply more. While taxes tend to decrease overall market activity, subsidies stimulate it, influencing both the price and quantity available in the market.