Consider Currie’s discussion of take-up of social programs, where the x -axis is program enrollment and the y -axis refers to monetary costs and benefi ts.

(a) If we measure the number of people enrolling in a program on the x -axis, why would the “demand” for these programs be downward sloping? Draw a demand curve.

(b) Why would the costs of establishing a program be upward sloping? Draw a supply curve.

(c) What is meant by the equilibrium where supply equals demand?

(d) How can one model program “stigma,” and what does it do to equilibrium enrollment?

Why?