Every point on a demand curve represents a consumer equilibrium ...

[Alygatorr01285]

Every point on a demand curve represents a consumer equilibrium in the indifference curve model. Explain why the previous statement is correct or not.
 
  What will be an ideal response?

Question 2

The above figure shows the marginal benefits and marginal costs of a college education. If a voucher for 5,000 is given to the students, then colleges charge tuition of
 
  A) 0.
  B) 5,000.
  C) 10,000.
  D) 15,000.

[anoriega3]

Answer to Question 1

The statement is correct. The demand curve is derived using the indifference curve/budget line diagram. Hence every point on the demand curve is the result of a consumer equilibrium in the indifference curve/budget line diagram.

Answer to Question 2

C