In a study at a large state university, students were randomly assigned roommates. Researchers found that, on
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In a study at a large state university, students were randomly assigned roommates. Researchers found that, on average, males assigned to roommates who reported drinking alcohol in the year before entering college earned GPAs one-quarter point lower than those assigned to nondrinking roommates. For males who drank frequently before college, being assigned to a roommate who also drank frequently before college reduced their GPAs by two-thirds of a point. Draw a graph showing the price of alcohol and the quantity of alcohol consumption on college campuses. Include in the graph the demand for drinking and the private and social costs of drinking. Label any deadweight loss that arises in this market?
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The efficient amount of alcohol consumption is Q 2 but because the ne...View the full answer
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