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

Question 124

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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:
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.
-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.

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