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, what is the deadweight loss?
A) $12 billion per year
B) $6 billion per year
C) $4 billion per year
D) zero

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, what is the deadweight loss?
A) $12 billion per year 
B) $6 billion per year 
C) $4 billion per year 
D) zero

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, what is the deadweight loss?
A) $12 billion per year 
B) $6 billion per year 
C) $4 billion per year 
D) zero

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