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Assignment:
1. Use a supply and demand model to illustrate the effect of the vouchers on the market for private school students, identifying the pre-voucher equilibrium price, and the post-voucher price that students pay and price that schools receive. What about for parish members and non-members. Does the voucher benefit one group of students more than the other?
2. Based on your answer above, explain why some would claim that the price increases were not only predictable, but even necessary. (Hint: What happens to the equilibrium quantity of students?)
the supply and demand schedules for tickets to basketball games in town of oakwood are given in the table below.price
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