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

question 423

Multiple Choice

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 tuition?

• A) $10,000 per year
• B) $14,000 per year
• C) $8,000 per year
• D) $16,000 per year

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Definitions:

State Statute

A state statute is a written law passed by a legislative body at the state level, governing matters not reserved for the federal government.

DACA Order

A directive under the Deferred Action for Childhood Arrivals, allowing certain undocumented individuals brought to the U.S. as children to receive a renewable period of deferred action from deportation and eligibility for a work permit.

Due Process Clause

A constitutional guarantee that prohibits the government from depriving individuals of life, liberty, or property without fair legal procedures.

Fourteenth Amendment

The Fourteenth Amendment to the United States Constitution grants citizenship to all persons born or naturalized in the U.S. and guarantees all citizens “equal protection of the laws.”