The government offers numerous educational subsidies through grants and low-cost equipment to schools. They also provide a lot of incentives to go to school. Because of this, we expect that the equilibrium price of education will and the equilibrium quant

The correct answer is (e) go up; be indeterminate. When the government offers educational subsidies and incentives, it makes education more affordable and attractive to students, thus increasing the demand for education. As a result, we expect the equilibrium quantity of students to increase. However, it is difficult to predict how the equilibrium price of education will change. On one hand, the subsidies and low-cost equipment provided by the government will put downward pressure on the price, which would suggest that the equilibrium price of education would go down. But on the other hand, the increased demand for education may put upward pressure on the price, which would suggest that the equilibrium price of education would go up. Therefore, the effect on the equilibrium price is indeterminate.