Suppose That a Policymaker Is Considering Offering Free College Tuition

Suppose that a policymaker is considering offering free college tuition to all low-to-moderate income families in your state. There are currently 1,000 students attending college who would meet the income qualifications to receive free tuition, and tuition is $10,000 per year. Which of the following statements is most likely to be true?

A) This program will cost the state approximately $10 million per year.
B) Some of the students will be disincentivized from attending college because they will have to apply for the program.
C) The $10,000 is a sunk cost that policymakers shouldn't consider when estimating the funds needed to administer this program.
D) Free tuition will incentivize more students to attend college, and this program will cost more than $10 million per year.