The Graph below illustrates the Demand and Supply curves for Higher Education by College students, per year in the USA. Use it for the next 5 Questions--Dp is the Private Demand curve based on the Marginal Private Benefit (MPB), Ds is the Social Demand curve based on optimal Marginal Social Benefit (MSB), and S is the Supply curve. Price and cost (Dollars per College Student Per year) 30,000 25,000 15,000 10,000 0 S Dp -LAG Bypical Ds MSB joptimal 20 40 60 Quantity (Millions of College Students per year) Why is the Ds curve different from the Dp curve in this market?

The Graph below illustrates the Demand and Supply curves for Higher Education by College students, per year in the USA. Use it for the next 5 Questions--Dp is the Private Demand curve based on the Marginal Private Benefit (MPB), Ds is the Social Demand curve based on optimal Marginal Social Benefit (MSB), and S is the Supply curve. Price and cost (Dollars per College Student Per year) 30,000 25,000 15,000 10,000 0 S Dp -LAG Bypical Ds MSB joptimal 20 40 60 Quantity (Millions of College Students per year) Why is the Ds curve different from the Dp curve in this market?

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Marginal Social Cost: P = 1 + 2 Q Graph the market. Be sure to fully and clearly label the graph, including: the Demand (D), the Marginal Private Cost (MPC), the Marginal Social Cost (MSC), the Private Equilibrium Quantity (Qpe), Private Equilibrium Price as (Ppe), the Socially Optimal Price (Ps), the Socially Optimal Quantity (Qs), and the Deadweight Loss (DWL).