Suppose the Demand and Supply Curves for Units of University

question 33

Essay

Suppose the demand and supply curves for units of university credits are given by the following equations:
Q^D = 5,000 - P
Q^S = -1,000 + 4P
where Q^D is the quantity of credits demanded, Q^S is the quantity supplied, and P is the price charged for each unit in dollars. Suppose that the government wants to make education more accessible and therefore passes a regulation that says no university can charge more than $1,000 per credit. Calculate the deadweight loss associated with this price ceiling.

---

Definitions:

Bad Communication Habits

Refers to consistent patterns of ineffective communication practices that could include interrupting others, not listening actively, or using ambiguous language, leading to misunderstandings.

Overwhelmed

A state of being unable to cope with the amount or intensity of demands, emotions, or stimuli faced.

Illustrators

Gestures that are used to clarify a point, such as pointing when giving directions.

Ebbinghaus Curve

A mathematical formula that describes the rate at which information is forgotten over time, illustrating that memory retention decreases exponentially with time.