The use of vouchers for education
A) decreases the demand for education and increases the equilibrium quantity.
B) increases the demand for education and increases the equilibrium quantity.
C) increases the deadweight loss for those who can't afford schooling.
D) decreases the quantity provided to the efficient level.
E) decreases the demand for education and decreases the equilibrium quantity.

Question

Quizplus · Accepted Answer

Vouchers for education are a form of government subsidy that gives families the ability to pay for education at schools of their choice. By making education more affordable, vouchers increase the demand for education, driving up the equilibrium quantity. This is because families are more likely to choose education for their children when they can receive financial support. Therefore, (B) is the correct answer.

The Use of Vouchers for Education