Market equilibrium price and quantity
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?
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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 ...
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This solution helps with a problem regarding market equilibrium price and quantity.
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