A family's preferences toward schooling,before and after a fixed-quantity subsidy,are shown in Figure 5-5.Prior to the subsidy,the family is in equilibrium at point J.Assume that public schooling cannot be supplemented with private tutoring.
-Refer to Figure 5-5.Public schooling provided in the amount of B0 causes the family to consume _____ of other goods.
A)MC
B)MH
C)M0
D)CH

Question

A family's preferences toward schooling,before and after a fixed-quantity subsidy,are shown in Figure 5-5.Prior to the subsidy,the family is in equilibrium at point J.Assume that public schooling cannot be supplemented with private tutoring. 
-Refer to Figure 5-5.Public schooling provided in the amount of B0 causes the family to consume _____ of other goods.
A)MC 
B)MH 
C)M0 
D)CH

Quizplus · Accepted Answer

At point B0, the family is consuming M0 of other goods.

A Family's Preferences Toward Schooling,before and After a Fixed-Quantity Subsidy,are