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Suppose the demand for education is given by P equals 100 minus Q , and the supply of education is given by P equals Q
Suppose the demand for education is given by P equals 100 minus Q , and the supply of education is given by P equals Q . Suppose that due to other members in your society becoming educated, there is a decrease in crime, which gives society a social benefit of b equals 6 to society. How could the government correct for this externality? The government could subsidize the consumption of education (scholarship, etc.) by $6 per unit. The government could tax education by $6 per unit. The government could subsidize the supply of education by $6 per unit. The government could tax the supply of education by $6 per unit
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