Answered

Tuition (price)
Market for Higher Education
Private Colleges
Sprivate
Tuition (price)
Market for Higher Education
Public Colleges
Enrollment (students per semester)
Enrollment (students per semester)
How will an increase in state subsidies to public colleges affect the market for public and private colleges?
a. In the market for public colleges:
demand will shift to the left.
supply will shift to the left.
demand will shift to the right.
supply will shift to the right.
Spublic



Answer :

GinnyAnswer

Final answer:

State subsidies to public colleges increase demand for public institutions due to lower costs, impacting private colleges as some students may shift preference.


Explanation:

Impact on Public and Private Colleges with Increase in State Subsidies:

When state subsidies to public colleges increase, it reduces the tuition fees at public institutions, making them more affordable. As a result, the demand for public colleges will shift to the right, indicating an increase in students choosing public institutions due to lower costs.

This surge in demand for public colleges can lead to a decrease in demand for private colleges since students may opt for the more affordable public options.


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