University a Sets Tuition at the Equilibrium Level Based on Price

question 62

Multiple Choice

University A sets tuition at the equilibrium level based on price and then imposes entrance requirements in the form of minimum high school GPA and standardized test scores. Enrollment at this school will likely be

• A)at the equilibrium level.
• B)below the equilibrium level because of the use of non-price rationing devices.
• C)above the equilibrium level because of the combination of price and the use of non-price rationing devices.
• D)above the equilibrium price because of the use of non-price rationing devices.