The figure above shows that the unregulated market equilibrium occurs at a tuition of ________ a year and ________ million students.
A) 15,000; 7.5
B) 25,000; 15
C) 15,000; 15
D) 25,000; 7.5
E) 38,000; 7.5
Question 2
A retired athlete built a gym near his house that could be used for free by all the residents in the neighborhood. However, the overuse of the facilities soon led to irreparable damages. This is an example of the ________.
A) tragedy of the commons
B) pecuniary externality
C) paradox of thrift
D) prisoners' dilemma
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