At College X and at College Y,students Pay $3,000 Less

question 45

Multiple Choice

At college X and at college Y,students pay $3,000 less than the equilibrium tuition.If the supply of openings is the same at both colleges,it follows that a shortage of openings will be greater at

• A) college X than college Y.
• B) college X than the surplus at college Y.
• C) college Y than the surplus at college X.
• D) college X than college Y if the demand is greater at college X.
• E) ​college X than college Y if the demand is less at college X.

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Definitions:

Total Firm Value

The overall value of a company, including both equity (market capitalization) and debt levels, used in business valuation and financial analysis.

Unlever

The process of reducing the level of debt in a company's capital structure, either by paying off debt with equity or with profits generated from operations.

Lend Out

The act of providing a loan or capital to another party with the expectation of being repaid, often with interest.

Repurchase Shares

The act of a company buying back its own shares from the marketplace, which can affect the company's stock value and earnings per share.