When State and Local Governments Provide Public Schools with a Per-Unit

Multiple Choice

When state and local governments provide public schools with a per-unit subsidy to provide educational services, the price that the schools providing these services receive is

A) less than the price that consumers pay to receive educational services.
B) less than the amount of the per-unit subsidy that the schools receive.
C) greater than the market clearing price without the subsidy.
D) equal to zero.