The difference between a tax and a subsidy is that when the government places a tax on a good, it the equilibrium price and the equilibrium quantity, whereas when the government places a subsidy on a good, it the equilibrium price and the equilibrium quantity. a. increases: decreases: decreases: increases b. increases: increases: decreases: decreases c. decreases: decreases: increases: increases d. decreases: increases: increases: decreases e. increases: does not change: does not change: increases.