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

question 111

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, how many students are enrolled?

• A) 8 million per year
• B) 12 million per year
• C) 10 million per year
• D) 4 million per year

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Definitions:

Exercise Chain

A network or franchise of facilities dedicated to physical fitness and exercise.

Accounting Costs

Expenses recognized and recorded in financial statements, including cost of goods sold, operating expenses, and taxes.

Tax-Deferred Savings

Investment accounts that offer tax benefits, deferring taxes on earnings until funds are withdrawn.

Loanable Funds

The market where savers supply funds to borrowers, often facilitated by financial institutions, influencing interest rates through supply and demand.