Using Figure 1 above, if the aggregate demand curve shifts from AD2 to AD3 the result in the long run would be:

The above figure shows the marginal benefits and marginal costs of a college education. If a subsidy of $5,000 is paid to the colleges, then colleges charge tuition of

A) $0. B) $5,000. C) $10,000. D) $15,000.

Refer to Figure 15-9. What is the difference between the monopoly's price and perfectly competitive industry's price?

A) The monopoly's price is higher by $3.50. B) The monopoly's price is higher by $13. C) The monopoly's price is higher by $21. D) The monopoly's price is higher by $9.50.