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Essentials of Economics 8th Edition by Bradley Schiller
Edition 8ISBN: 978-0073511399Essentials of Economics 8th Edition by Bradley Schiller
Edition 8ISBN: 978-0073511399 Exercise 11
Suppose the following data represent the market demand for college education:
( a ) If tuition is set at $3,000, how many students will enroll?
Now suppose that society gets an external benefit of $1,000 for every enrolled student (for, say, more informed voting).
( b ) Draw the social and market demand curves for this situation.
( c ) What is the socially optimal level of enrollments at the tuition price of $3,000?
( d ) How can this optimal enrollment level be achieved?
( a ) If tuition is set at $3,000, how many students will enroll?Now suppose that society gets an external benefit of $1,000 for every enrolled student (for, say, more informed voting).
( b ) Draw the social and market demand curves for this situation.
( c ) What is the socially optimal level of enrollments at the tuition price of $3,000?
( d ) How can this optimal enrollment level be achieved?
Explanation
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Given: Market demand for college educati...
Essentials of Economics 8th Edition by Bradley Schiller
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