Suppose that the government provides a subsidy for the consumption of higher education.The equilibrium price of higher education will be ___________ with the subsidy than without because the demand curve with the subsidy will lie to the ______________ of the demand curve without the subsidy.

Question

Quizplus · Accepted Answer

The subsidy will make higher education more affordable, which will increase the demand for it. This will shift the demand curve to the right, leading to a higher equilibrium price.

Suppose That the Government Provides a Subsidy for the Consumption