The figure below shows the demand and supply curves in the market for elementary education. Figure 13.1
In the figure,
D: Private demand curve for elementary education
D + s: Demand curve which includes public benefits
S: Supply curve of education
Price and Quantity have been taken on vertical and horizontal axes respectively.
-In Figure 13.1,D represents the private demand for education,and D+s represents the demand including the public benefits of education.According to the figure,the optimal subsidy is equal to:
Definitions:
Duty of Loyalty
A legal obligation of an individual to act in the best interests of another party or entity, often in a fiduciary capacity.
Flooring
In retail, it refers to the financing or loan provided to cover the cost of inventory; in construction, it pertains to the material used to construct floors.
Installs
The process of setting up software or hardware for it to be ready for use in a computer system.
Principal and Agent
A relationship where the principal grants authority to the agent to act on the principal’s behalf in dealing with third parties.
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