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, what is the tuition?
A) $10,000 per year
B) $12,000 per year
C) $8,000 per year
D) $6,000 per year
Correct Answer:

Verified
Correct Answer:
Verified
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