The Figure Below Shows the Demand and Supply Curves in the Market

question 29

Multiple Choice

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.
-According to Figure 13.1, the outcome of an unregulated, unsubsidized market would be:

• A) point a.
• B) point b.
• C) point c.
• D) point d.
• E) point e.

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Definitions:

Saving Rate

The portion of income that is not spent on consumption but rather saved or invested.

Double Taxation

The imposition of taxes on the same income, assets, or financial transaction at two different levels of government, such as corporate income being taxed both to the corporation and to the shareholders when distributed as dividends.

Economic Growth

A rise in the production of goods and services per capita over a certain time frame.

Saving Rate

The proportion of income that is not spent on consumption but is instead saved by individuals or entities.