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.

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

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

Answer 1

The correct response is:

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

A per-student subsidy provided to private schools effectively lowers the cost for private education providers. As a result, at any given price point, they are incentivized to supply more private education, leading to an increase in the quantity supplied.