' A government is considering two alternative plans for providing subsidy to private schools. Under the rst plan it offers to let a number of students at a public school transfer to a private school under two conditions: It will transmit to the private school the same per-pupil subsidy it currently provides the public school, and the private school will be required to admit the students at a below market tuition rate. Under the second plan, the government will simply provide the students with grants to cover the current market tuition rate at the private school. { Hint: Does it matter if schools receive payments directly from the government or from the consumers?) The outcomes of the two plans 0 A. will be identical; a private school will provide identical educational services under both the plans. 0 B. will be different; under the rst plan where a private school directly receives the subsidy, it will provide a level of educational services that is less than the market equilibrium quantity. O C. will be different; under the rst plan where a private school directly receives the subsidy, it will provide a quantity of educational services in excess of the market equilibrium quantity. 0 D. will be identical; 8 private school will charge the students the same tuition rate