Question: In Figure, a positive externality was corrected with a $30,000 subsidy paid to students. Draw a diagram to show that the total price paid by

In Figure, a positive externality was corrected with a $30,000 subsidy paid to students. Draw a diagram to show that the total price paid by students, the total price received by colleges, and the equilibrium quantity of degrees would have been exactly the same if the $30,000 subsidy per student had been given to collegesinstead.

In Figure, a positive externality was corrected with a $30,000

Low Consumption, High Growth Consumption Goods (un its per year) Next Year's PPF This Year's PPF Capital Goods (units per year)

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