The figure below shows the market for college. The quantity is the number of students enrolled per year and the price is tuition. Suppose the government decides on a "anti-education" policy and sets the maximum number of students allowed to enter college each year at Q1. After this change, which of the following will be true? The figure below shows the market for college.The quantity is the number of students enrolled per year and the price is tuition Price Market for College Supply A P3 F K B G I P2 H M c - T N P1 D Demand Quantity 1 0 E Q1 Q2 Q3 Suppose the government decides on a "anti-education"policy and sets the maximum number of students allowed to enter college each year at Q1. After this change, which of the following will be true?
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Step 1: Before the government sets the maximum number of students allowed to enter college at Q1, the market is in equilibrium at point E, where the quantity demanded (Q2) equals the quantity supplied (Q2) and the price is P1. Show more…
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