Suppose that the government provides a subsidy for the consumption of higher education. The equilibrium price of higher education will be _ with the subsidy than without because the demand curve with the subsidy will lie to the ____ of the demand curve without the subsidy.

If the government provides a subsidy to the consumers for the consumption of higher education. The cost of getting a higher education will get reduced. This will cause the demand for higher education to increase. So after subsidy, the demand curve will move to the right.

This rightward shift in the demand curve will cause the equilibrium price of higher education to increase.

So the equilibrium price will be higher with subsidy than without subsidy and the demand curve with subsidy will be on the right of the demand curve without subsidy.

Suppose that the government provides a subsidy for the consumption of higher education. The equilibrium price of higher education will be ___________ with the subsidy than without because the demand curve with the subsidy will lie to the ______________ of the demand curve without the subsidy.

Respuesta :

Otras preguntas

Suppose that the government provides a subsidy for the consumption of higher education. The equilibrium price of higher education will be _ with the subsidy than without because the demand curve with the subsidy will lie to the ____ of the demand curve without the subsidy.