The federal government is considering providing a per-student subsidy to private schools in the country. What is the anticipated effect of the subsidy on the supply of private education?(1 point)

Question

Responses

At any given price, the quantity supplied of private education will decrease.
At any given price, the quantity supplied of private education will decrease.

At any given price, the quantity supplied of private education will increase.
At any given price, the quantity supplied of private education will increase.

The demand for private education will increase.
The demand for private education will increase.

The supply of private education will decrease.
The supply of private education will decrease.

Answer 1

The anticipated effect of the subsidy on the supply of private education would be that at any given price, the quantity supplied of private education will increase. This is because the subsidy effectively lowers the cost of providing education for private schools, allowing them to expand services and enroll more students. Therefore, the correct response is:

At any given price, the quantity supplied of private education will increase.