Source: Econlog
by Bryan Cutsinger
“Question: Is the following true or false? Explain your reasoning. If the quantity of higher education services supplied does not rise with the price of those services, i.e., if supply is perfectly inelastic, then subsidizing the demand for higher education services will primarily benefit universities and their employees. Solution: I use this question in my microeconomic principles class to get my students to think about the actual beneficiaries of a real-world policy that many of them likely believe is intended to benefit students.” (01/29/26)
https://www.econlib.org/econlog/cutsingers-solution-the-price-of-education