Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Assume that university education is supplied by private colleges and provides a positive externality to society. The demand and supply for university education are the

Assume that university education is supplied by private colleges and provides a positive externality to society. The demand and supply for university education are the following (P represents thousands of dollars of fees, and Q represents thousands of students): Demand:P = 90 - Q Supply:P=33+Q. The government decides that the "optimal" number of students is 46.5 thousand. To achieve this goal, the government could A. provide students with a scholarship of $72.00 thousand dollars. B. provide universities with a subsidy of $36 thousand dollars per student. C.provide students with a scholarship of $43.50 thousand dollars. D.cap university fees at $43.50 thousand dollars. E.None of the other answers

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Microeconomics

Authors: Paul Krugman, Robin Wells

4th Edition

1464143870, 9781464143878

More Books

Students also viewed these Economics questions

Question

Explain how benefits under the OASDI program are financed

Answered: 1 week ago