09-05 Explain how governments try to encourage production of goods and services;such as education;that carry external benefits.
09-18 Providing Subsidies
The following graph refers to a province's day care market which is in equilibrium:

-Refer to the above graph to answer this question.In an effort to increase the number of daycare spaces,suppose the authorities give parents a subsidy of $150 for each child registered.What will be the new equilibrium fee?
A)$350.
B)$450.
C)$500.
D)$600.
E)$650.

Question

09-05 Explain how governments try to encourage production of goods and services;such as education;that carry external benefits.
 09-18 Providing Subsidies
The following graph refers to a province's day care market which is in equilibrium:
 
-Refer to the above graph to answer this question.In an effort to increase the number of daycare spaces,suppose the authorities give parents a subsidy of $150 for each child registered.What will be the new equilibrium fee?
A)$350. 
B)$450. 
C)$500. 
D)$600. 
E)$650.

Quizplus · Accepted Answer

The Answer of 09-05 Explain how governments try to encourage production of goods and services;such as education;that carry external benefits.
 09-18 Providing Subsidies
The following graph refers to a province's day care market which is in equilibrium:
 
-Refer to the above graph to answer this question.In an effort to increase the number of daycare spaces,suppose the authorities give parents a subsidy of $150 for each child registered.What will be the new equilibrium fee?
A)$350. 
B)$450. 
C)$500. 
D)$600. 
E)$650.

09-05 Explain How Governments Try to Encourage Production of Goods