The Gap Between the Higher Equilibrium Tuition and Lower Student

question 16

Multiple Choice

The gap between the higher equilibrium tuition and lower student tuition is $4,000 at university A and $10,000 at university B.  It follows that

• A)if the supply of openings at each university is the same, then the demand to attend university B must be higher than the demand to attend university A.
• B)the supply of openings is necessarily larger at university A than B.
• C)instructors at university B are likely to be more punctual for their office hours than instructors at university A.
• D)instructors at university A are more likely to be punctual for their office hours than instructors at university B.

---

Definitions:

Firm Size

Generally refers to the scale of a business entity in terms of its assets, revenues, or number of employees, which can affect its operations and financial performances.

Book-to-market Ratio

A valuation metric comparing a company's book value to its market value.

Market Index

A statistical measure that shows changes in a financial market by tracking the performance of a set of selected stocks.

Explanatory Factors

Variables that are thought to explain changes or variations in a particular variable of interest, often used in statistical models to understand outcomes.