Supply curve = 11 + P/3
Demand curve = 15 -P for private school
Government voucher gives 3,000 to parents....
Equilibrium price = ?
equilibrium quantity = ?
consumer surplus and government expenditure = ?
I know Pd = Ps and Qd = Qs......answer keeps coming out negative price?© BrainMass Inc. brainmass.com October 9, 2019, 8:17 pm ad1c9bdddf
Please see the attached file.
Note that the given supply curve Qs = 11 + Ps/3 is for the period after the voucher proposal passes, so the subsidy is immaterial when doing calculations ...
This solution helps with a problem regarding market equilibrium price and quantity.