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When the government offers subsidies to state universities that admit students with B averages in high school, thea) supply of university admissions will increase.b) supply of university admissions will decrease.c) quantity supplied of university admissions will increase.d) quantity supplied of university admissions will decrease.e) supply of university admissions won’t be changed because demand for admission will increase.

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When the government offers subsidies to state universities that admit students with B averages in high school, then the SUPPLY of university admissions willincrease. This is because of the government intervention in the market which in this case is price ceiling. The demand for the education will then increase and also increase the supply side.

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