Use the Following Figure to Answer the Questions : Figure

question 11

Multiple Choice

Use the following figure to answer the questions : Figure : 5-5 shows a family's preferences toward schooling,before and after a fixed-quantity subsidy.

-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.After the fixed-quantity subsidy has been introduced,the family consumes:

• A)its optimum level of other goods.
• B)less than its optimum quantity of schooling.
• C)more than its optimum quantity of schooling.
• D)less than its optimum quantity of other goods.

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