Question

When the federal government subsidizes higher education in the form of Pell grants to students, it results ina. An increase in the supply of higher educationb. A decrease in the supply of higher educationc. An increase in the demand for higher educationd. A decrease in the demand for higher education

Answer 1

Answer:

The correct answer is: An increase in the demand for higher education.

Explanation:

When the federal government will subsidize higher education by providing Pell grants to students. This will cause the cost of getting a higher education to reduce.  

Now, this decrease in cost will lead to an increase in the demand for higher education. The demand curve will move to the right. This shows that at the same price more quantity of higher education will be demanded.