If public subsidies for education were eliminated, what would you expect as an outcome in the market for educational services?
A) More students would enroll in school.
B) The price students pay to attend school would equal the value of an additional unit of education consumed.
C) There would be no correlation between the price students pay and the cost of providing the educational services.
D) The quality of education would deteriorate.

Question

Quizplus · Accepted Answer

The elimination of public subsidies for education would increase the cost of attending school for students, which would lead to a more accurate reflection of the true cost of providing educational services. In turn, this would lead to the price students pay to attend school equaling the value of an additional unit of education consumed. However, there is no guarantee that more students would enroll in school, nor is it certain that the quality of education would deteriorate. There may still be demand for education at the higher price point, and schools may find ways to deliver the same or even better quality education more efficiently.

If Public Subsidies for Education Were Eliminated, What Would You