A study of a country’s colleges and universities resulted in the demand equation q= 20,000−2p, where q is the enrollment at a public college or university and p is the average annual tuition (plus fees) it charges. Officials at Enormous State University have developed a policy whereby the number of students it will accept per year at a tuition level of p dollars is given by q=8,500+ 0.5p.Find the equilibrium tuition price p and the consumers’ and producers’ surpluses at this tuition level. What is the total social gain at the equilibrium price?
A study of a country’s colleges and universities resulted in the demand equation q= 20,000−2p, where q is the
enrollment at a public college or university and p is the average annual tuition (plus fees) it charges. Officials at Enormous State University have developed a policy whereby the number of students it will accept per year at a tuition level of p dollars is given by q=8,500+ 0.5p.Find the equilibrium tuition price p and the consumers’ and producers’ surpluses at this tuition level. What is the total social gain at the equilibrium price?
Looking for a Similar Assignment? Order now and Get 10% Discount! Use Coupon Code "Newclient"
