The two market diagrams below show the market for public and private colleges.

a. In the graph, the horizontal axis is labeled Enrollment (students per semester) and the vertical axis is labeled Tuition (price). The graph shows a rising slope labeled S subscript Private from bottom left to top right and a slope labeled D subscript 1 from top left to bottom right. A vertical dotted line and a horizontal dotted line from both the axes touch the intersection point E of S subscript Private and D subscript 1. b. In the graph, the horizontal axis is labeled Enrollment (students per semester) and the vertical axis is labeled Tuition (price). The graph shows a rising slope labeled S subscript Public from bottom left to top right and a slope labeled D subscript 1 from top left to bottom right. A vertical dotted line and a horizontal dotted line from both the axes touch the intersection point F of S subscript Private and D subscript 1.

How will an increase in state subsidies to public colleges affect the market for public and private colleges?

a. Inthe market for public colleges:

multiple choice 1

• supply will shift to the left.
• demand will shift to the left.
• demand will shift to the right.
• supply will shift to the right.

b. Inthe market for private colleges:

multiple choice 2

• supply will shift to the left.
• demand will shift to the right.
• demand will shift to the left.
• supply will shift to the right.