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).
-Using the figure above,suppose a subsidy of $15,000 per student is provided to private colleges.Then,the market equilibrium occurs at a tuition of ________ a year and ________ million students.
A) $10,000; 15
B) $25,000; 15
C) $15,000; 15
D) $15,000; 7.5
E) $20,000; 20

Question

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).
-Using the figure above,suppose a subsidy of $15,000 per student is provided to private colleges.Then,the market equilibrium occurs at a tuition of ________ a year and ________ million students.
A) $10,000; 15 
B) $25,000; 15 
C) $15,000; 15 
D) $15,000; 7.5 
E) $20,000; 20

Quizplus · Accepted Answer

The Answer of  
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).
-Using the figure above,suppose a subsidy of $15,000 per student is provided to private colleges.Then,the market equilibrium occurs at a tuition of ________ a year and ________ million students.
A) $10,000; 15 
B) $25,000; 15 
C) $15,000; 15 
D) $15,000; 7.5 
E) $20,000; 20

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