Suppose that in an effort to help single parents,the government has decided to pay part of the cost of childcare.This measure will
A)increase efficiency in the childcare market.
B)increase consumer surplus in the childcare market.
C)increase total surplus in the childcare market.
D)leave the quantity of childcare unchanged.

Question

Quizplus · Accepted Answer

Subsidies cause areas of consumer surplus to grow,but total surplus to shrink.

Suppose That in an Effort to Help Single Parents,the Government