Answer
The equilibrium quantity will increase for public colleges.
The equilibrium quantity will decrease for private colleges
Work Step by Step
For Public Colleges
Due to the availability of subsidy the supply curves moves outward from S0 to S1.
The equilibrium quantity ( Total enrollment ) increases.
For Private colleges
Due to the availability of subsidy, enrollment in private colleges will decrease due to a decrease in demand D0 to D1.
The equilibrium quantity ( Total enrollment ) decreases.
