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The following Supply and Demand equations describe the market for Bachelors Degrees in the US in...

The following Supply and Demand equations describe the market for Bachelors Degrees in the US in 2018-19 school year. All numbers are in 1,000s. The price represents 4 years of tuition, and the quantity represents the number of graduates with bachelors degrees in a single year.

Qd = 5700 − 38 Pd

Qs = 12.667 Ps + 380

Government subsidies in the form of guaranteed loans and grants are valued at $5,000 per year per student, or $20,000 over four years.

2. Find the subsidized equilibrium outcome for the 2018-19 school year.

a) What is the quantity of bachelor’s degrees awarded at the end of the 2018-19 school year?

b) What is the price paid by consumers (students)?

c) What is the price received by producers (universities)?

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