A Decrease in the Tuition (I

question 208

Multiple Choice

A decrease in the tuition (i.e., price) that a public university charges would result in:

• A) an downward movement along the supply curve for college classes.
• B) an upward movement along the supply curve for college classes.
• C) a shift in the supply of college classes to the right.
• D) a shift in the supply of college classes to the left.

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Definitions:

Perfect Competitor

A theoretical market structure where many firms sell identical products, there are no barriers to entry or exit, buyers have perfect information, and firms are price takers.

Long Run

A period in economics where all factors of production and costs are variable, allowing for full industry adjustment to changes.

Perfect Competitor

A theoretical market structure where many firms offer a standardized product, there is free entry and exit, and all buyers and sellers have perfect information, leading to price being equal to marginal cost.

Long Run

A period in which all inputs can be adjusted, allowing firms to change their production capacity and industries to enter or exit markets.