Question

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 6,700 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? equilibrium tuition price p$ consumers' surplus CS producers' surplus total social gain

Answer 1

13 3005p 18-900 5330 220, 000-ap 9,360-을 p-D(7) P- a() -22-14680 ,9360 1360 4040(9360)- (1360)2-4040(o)-。) 4 са 2 Ps

1360 →PS 80o0 9360 20, 000) 360) (360300o)) CI$4,Soo, ooo-89, 609, 60)-(0) O10000)-d PaR = 门 ) SGー97,Sq o,q.oot lS9 qia, ooo S6,-$115,508、400 ラ producer's surplus ps-吊 991590,400 3 roducer & Surplu social gain - Total, ns, sos ,400