The figure above shows the demand for college education (D), the marginal social benefit of college education (MSB), and the marginal cost of the private schools (MC).
-The figure above shows that the unregulated market equilibrium occurs at a tuition of ________ a year and ________ million students.

Question

Quizplus · Accepted Answer

The unregulated market equilibrium occurs at the intersection of the supply and demand curves. The supply curve is upward sloping, indicating that as tuition increases, more students will be willing to attend college. The demand curve is downward sloping, indicating that as tuition increases, fewer students will be willing to attend college. The equilibrium point is where the supply and demand curves intersect, which is at a tuition of $15,000 and 7.5 million students.

The Figure Above Shows the Demand for College Education (D)