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QUESTION 14 Figure 14.1 shows the market for nursery school places. Figure 14.1 Costs/ benefits Po Per MPB MPC MSC MSB Q Quantity of nursery

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QUESTION 14 Figure 14.1 shows the market for nursery school places. Figure 14.1 Costs/ benefits Po Per MPB MPC MSC MSB Q Quantity of nursery school places (4 Marks) Which one of the following measures could a government introduce to achieve the social optimum consumption of nursery school places? It could introduce a: A. maximum price of OP1 per unit B. subsidy of RS per unit C. tax of VT per unit D. minimum price of OP1 per unit

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