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

question 90

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.
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:

• A)0Q_s -0Q_p.
• B)0P_s - 0P_p.
• C)Q_pa - Q_pc.
• D)Q_sb - Q_sd.
• E)the distance bc.

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Definitions:

Proactive Interference

The tendency for older memories to interfere with the retrieval of newer memories.

Former Students

Individuals who have completed or terminated their studies at an educational institution.

New Students

Individuals who are entering a school, college, university, or any educational institution for the first time or are new to a particular level of education.

Nonsense Syllables

Meaningless sets of letters used in psychological experiments to study memory and learning without prior associations.