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MMLU / Suppose the county government sends each parent a coupon that can be used to…

Problem

Answer published by the source. Consult the official source to check your work against its answer.

question

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?

choices

  1. The demand for daycare falls, lowering the market price.
  2. The demand for daycare rises, increasing the market price.
  3. The supply of daycare rises, lowering the market price.
  4. The supply of daycare falls, increasing the market price.

subject

high_school_microeconomics

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Source and history

Official source

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