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

question 368

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, if the government provides a subsidy to colleges of $6,000 per student per year, how many students will be accepted?

• A) 8 million per year
• B) 12 million per year
• C) 10 million per year
• D) 16 million per year

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Definitions:

Fixating

The act of focusing one's attention or thoughts obsessively on a particular object or subject.

Oldest

Referring to something or someone of the greatest age within a group or in a specified timeframe.

Mechanical Devices

Tools or machines made up of moving parts, designed to perform a specific mechanical function.

Cough

A common reflex action aimed at clearing the throat or respiratory passages of irritants, mucus, or foreign particles.