Figure shows the impact of a $10,000 subsidy on the market for college education when the subsidy is paid to college students. Starting with the same initial supply and demand curves, show what happens when the same $10,000 subsidy per student is paid to the colleges they attend. Suggestion: Trace the relevant curves from the figure on your own sheet ofpaper.

Transcribed Image Text:

Price per Bushel 12 $5.50 4.50--- Quantity (millions of bushels per week) 190 210 230