Exhibit 5-2 -Refer to Exhibit 5-2. If the Tuition Is Set at Tuition

question 58

Multiple Choice

Exhibit 5-2

-Refer to Exhibit 5-2. If the tuition is set at $70 there will be

• A) a shortage at 10 a.m. and a surplus at 8 a.m.
• B) a surplus at 10 a.m. and a shortage at 8 a.m.
• C) equilibrium at 10 a.m. and a surplus of seats at 8 a.m.
• D) equilibrium at 10 a.m. and a shortage of seats at 8 a.m.

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Definitions:

Normal Good

A type of good for which demand increases as the income of the consumer increases and decreases as the income of the consumer decreases, all else being constant.

Income

Money received, especially on a regular basis, for work or through investments, constituting the financial gain derived from labor, capital, or other sources.

Hamburgers

In an economic context, refers to a commonly cited example of a product in studies of competition, pricing, and consumer choice.

Supply Curve

An illustrated chart that displays the link between the cost of a commodity and the volume of the commodity that producers are ready to sell.