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, if the government provides a subsidy to colleges of $6,000 per student per year, what is the tuition?
A) $10,000 per year
B) $12,000 per year
C) $8,000 per year
D) $6,000 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, if the government provides a subsidy to colleges of $6,000 per student per year, what is the tuition?
A) $10,000 per year 
B) $12,000 per year 
C) $8,000 per year 
D) $6,000 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, if the government provides a subsidy to colleges of $6,000 per student per year, what is the tuition?
A) $10,000 per year 
B) $12,000 per year 
C) $8,000 per year 
D) $6,000 per year

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