The effect of the new vouchers being offered by the state of Florida, will greatly impact the

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The effect of the new vouchers being offered by the state of Florida, will greatly impact the market of private schools. Considering the pre-voucher price was at equilibrium with both supply and demand, the new voucher will definitely shift the demand curve to the right for both parish members and non-parish members. Considering parish members, the old tuition price was $6000 a year, with the new voucher, this will allow parish members to go to the private school for free. Post voucher equilibrium prices will have to go up in order for the private school to receive the full capital from the new voucher program, and also to balance supply and demand once again. The same is said for non-members as the old tuition price was $7000. This would still enable them to go to the private school for free. With the post voucher pricing going to $10,000 for parish members and $12,000 for non-parish members, it will lower the demand and shift the demand curve a little bit more to the left in response to the new voucher program because the students are still receiving a major discounted price on tuition. Parish members are only going to pay $2000, the surplus left owed after the voucher, whilst non-parish members will pay $4000. The extra capital will enable the school to supply more teachers, and also increase their pay, while making improvements to the school to allow for the increase of demand for the discounted tuition. The voucher program benefits all students as they are still getting a cheaper price for tuition, but it still did favor the parish members as they are paying 50% of what the non-parish members will still pay.

The schools tuition increase was absolutely necessary in response to the states voucher program as they needed to be able to take full advantage of the $8000 per student from the state in order to be able to supply more for the increased demand that it will cause on the school. The equilibrium quantity of students will go up in response to the new voucher program, so the price has to go up as well to keep the market in balance.