The Demand for Seats in 10 A

question 80

Multiple Choice

The demand for seats in 10 a.m. classes at the university is higher than the demand for seats in 8 a.m. classes. The supply of seats is fixed. If the university prices classes at the price required to achieve equilibrium at 10 a.m., there will be

• A)a shortage at 8 a.m.
• B)a surplus at 8 a.m.
• C)equilibrium at 8 a.m.
• D)disequilibrium at 8 a.m., but we cannot determine which type.

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Definitions:

Per Month

A recurring period or frequency, indicating that an action or event occurs or is calculated on a monthly basis.

Effective Rate

The actual interest rate an investor earns or pays on an investment or loan, taking into account the compounding of interest.

Per Month

A recurring or regular interval of payment or calculation that occurs every month.

Strip Bonds

Bonds that have had their principal and coupon payments separated, or "stripped", creating two distinct types of securities: zero-coupon bonds and interest payment coupons.