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.

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

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

Answer 1

The correct response is:

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

When the federal government provides a subsidy to private schools, it effectively allows those schools to receive more revenue per student. This financial support can incentivize private schools to offer more educational services, invest in facilities, hire more staff, or even reduce tuition fees. As a result, at any given price level, the quantity of private education supplied is likely to increase.