The figure shows the supply curve (S) and the demand curve (D) for college education. The external benefit from college education is $6,000 per student per year and is constant.
-In the figure above, with no government involvement and if the colleges are competitive, how many students are enrolled?
A) 8 million per year
B) 12 million per year
C) 10 million per year
D) 4 million per year

Question

The figure shows the supply curve (S) and the demand curve (D) for college education. The external benefit from college education is $6,000 per student per year and is constant.
-In the figure above, with no government involvement and if the colleges are competitive, how many students are enrolled?
A) 8 million per year 
B) 12 million per year 
C) 10 million per year 
D) 4 million per year

Quizplus · Accepted Answer

The Answer of  The figure shows the supply curve (S) and the demand curve (D) for college education. The external benefit from college education is $6,000 per student per year and is constant.
-In the figure above, with no government involvement and if the colleges are competitive, how many students are enrolled?
A) 8 million per year 
B) 12 million per year 
C) 10 million per year 
D) 4 million per year

The Figure Shows the Supply Curve (S) and the Demand