Figure 36.1
-Examine Figure 36.1, which shows the market for K-12 education in an economy. Suppose the K-12 education market is subsidized. The tax payers pay _____ per student.

Question

Quizplus · Accepted Answer

The subsidy amount per student is the difference between the price paid by consumers and the price received by producers. If the market price without subsidy is $12,000 and with subsidy is $8,000, taxpayers cover the $4,000 difference, making the total cost $8,000 per student.

Figure 36.1 -Examine Figure 36.1, Which Shows the Market for K-12 Education