The Gap Between the Higher Equilibrium Tuition and Lower Student

question 8

Multiple Choice

The gap between the higher equilibrium tuition and lower student tuition is $4,000 at university A and $10,000 at university B. It follows that

• A) if the supply of openings at each university is the same, then the demand to attend university B is higher than the demand to attend university A.
• B) the supply of openings is necessarily larger at university A than B.
• C) instructors at university B are likely to be more punctual when meeting their office hours than instructors at university A.
• D) a and c
• E) none of the above

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