The government offers numerous educational subsidies through grants and low-cost equipment to schools.They also provide a lot of incentives to go to school.Because of this,we expect that the equilibrium price of education will ________ and the equilibrium quantity of students will ________.

Question

Quizplus · Accepted Answer

Subsidies and incentives lower the cost of education for students and increase demand, leading to a higher quantity of students. However, the effect on price is indeterminate without knowing how supply responds.

The Government Offers Numerous Educational Subsidies Through Grants and Low-Cost