There is a debate in a country about the higher education system. Some political parties want to promote the value of university education and give as many young people the chance to attend university as possible. This party believe that the state should provide grants for young people to help them go to university. An opposing party also agrees that a university education is a good thing but believes that the benefits that a university education provides should be paid for by those who go to university and not by the state. They advocate students paying the tuition fees for their university at the start of each academic year.

Present an argument for and against both policies, and state which you think is the most efficient and equitable market outcome. Use diagrams to help support your answer where appropriate.