Suppose the county government sends each parent a coupon that can be used to subsidize the cost of sending each child to daycare. What would you expect to occur in the market for daycare services?
A.
The demand for daycare falls, lowering the market price.
B.
The demand for daycare rises, increasing the market price.
C.
The supply of daycare rises, lowering the market price.
D.
The supply of daycare falls, increasing the market price.
E.
A permanent shortage of daycare services exists.
Exam No： AP Micro Practice Test 4 Year：2024 Question No：18
Answer:
B
Knowledge points:
2.1 Demand
2.7 Market Disequilibrium and Changes in Equilibrium
2.8 The Effects of Government intervention in Markets
Solution:
Download APP for more features
1. Tons of answers.
2. Smarter Al tools enhance your learning journey.
IOS
Download
Download
Android
Download
Download
Google Play
Download
Download