Figure 11.4.3Price ($)Supply MC = MSCXMSBDemand MB200400 600 800Quantity (students per year)Look at the market for private education in Figure 11.4.3. In the private education market, the quantity produced is4000OO3000200010000O A. efficient, but price is too low to clear the market.B. less than the efficient quantity.O C. efficient, but no single price can coordinate smart individual choices and smart social choices.D. greater than the efficient quantity.E. efficient, but the price is too high to clear the market.

Market refers to a place at which the buyer and seller of a goods or service comes in contact with…

Answered: Figure 11.4.3 Price ($) 4000 3000 2000…

Business

Economics

Figure 11.4.3 Price ($) 4000 3000 2000 1000 Supply = MC = MSC MSB

Principles of Economics (MindTap Course List)

8th Edition

ISBN:9781305585126

Author:N. Gregory Mankiw

Publisher:N. Gregory Mankiw

Chapter7: Consumers, Producers, And The Efficiency Of Markets

Section: Chapter Questions

Problem 6CQQ

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Question

Figure 11.4.3
Price ($)
Supply MC = MSC
X
MSB
Demand MB
200
400 600 800
Quantity (students per year)
Look at the market for private education in Figure 11.4.3. In the private education market, the quantity produced is
4000
OO
3000
2000
1000
0
O A. efficient, but price is too low to clear the market.
B. less than the efficient quantity.
O C. efficient, but no single price can coordinate smart individual choices and smart social choices.
D. greater than the efficient quantity.
E. efficient, but the price is too high to clear the market.

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