A Family's Preferences Toward Schooling,before and After a Fixed-Quantity Subsidy,are

Multiple Choice

A family's preferences toward schooling,before and after a fixed-quantity subsidy,are shown in Figure 5-5.Prior to the subsidy,the family is in equilibrium at point J.Assume that public schooling cannot be supplemented with private tutoring.
-Refer to Figure 5-5.Public schooling provided in the amount of B0 causes the family to increase consumption of other goods by _____.

A) MC
B) MH
C) M0
D) CH