If Parking Spaces on a College Campus Are Scarce, with Quantity

question 18

Multiple Choice

If parking spaces on a college campus are scarce, with quantity demanded during the "peak" hours, from 8 a.m. to 11 a.m., far greater than the number of spaces, an economist would propose as an efficient solution,

• A)lowering the parking fees during those hours to compensate students for the longer search time.
• B)charging the same parking fees during all hours of the school day.
• C)raising parking fees during the peak hours to encourage some students to schedule classes during other hours when parking fees are lower.
• D)hiring more security guards to patrol for illegal parkers.

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Definitions:

Credit

An accounting entry that increases liabilities or equity or decreases an asset or expense account.

Acquisition Method

An accounting procedure for recording the purchase of one company by another, focusing on fair value assessments of acquired assets and liabilities.

Subsidiary Shares

Subsidiary shares are equity shares held by a parent company in a subsidiary company, giving it ownership interest.

Selling Price

The amount of money a buyer pays to purchase an item or service from a seller.