To make child daycare more affordable,government advisors are debating two possible options.Plan A is to give daycare centers a $100 subsidy per month per child.Plan B is to give the parents $100 reduction in taxes per month per child in daycare.Which plan benefits parents more?
A) Plan A because it will increase the supply of childcare and decrease the price.
B) Plan B because the $100 goes directly to the parents.
C) The plans are equivalent in terms of their impact on the price minus subsidy paid by parents.
D) Plan A because the price will fall,while under Plan B the price will rise.
Correct Answer:
Verified
Q38: In a supply-demand diagram,the law of supply
Q39: Consider a demand curve for reckless driving,for
Q40: An excise tax of 20 cents on
Q41: Suppose we observe that the price of
Q42: The accompanying supply-demand diagram shows the market
Q44: Which of the following is the most
Q45: Assume that the demand curve for oranges
Q46: If the wages of loggers went up,the
Q47: The imposition of a sales tax on
Q48: Consider the market for high-end wine.Statistics show
Unlock this Answer For Free Now!
View this answer and more for free by performing one of the following actions
Scan the QR code to install the App and get 2 free unlocks
Unlock quizzes for free by uploading documents