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:

Liabilities

Financial obligations or debts that an entity owes to others, which must be settled over time through the transfer of economic benefits.

Assets

Economic resources or valuable items that a business owns or controls with the expectation that they will provide future benefits.

Mismanagement Decisions

Poor or inefficient decisions made in the management of a company that can lead to negative outcomes or failure.

Small Businesses

Enterprises characterized by a small number of employees, limited revenue, and often locally based, playing a significant role in the economy.