Students at Informed University Pay $40 Per Year for a Parking

question 156

Multiple Choice

Students at Informed University pay $40 per year for a parking permit but many complain that they are unable to find a parking place in University lots.In terms of equilibrium, this suggests that:

• A)student incomes are too low.
• B)parking permits are underpriced.
• C)parking permits are overpriced.
• D)the University should make parking free.

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Definitions:

Book Value

The net value of an asset as recorded on a company's balance sheet, calculated by subtracting accumulated depreciation from the original purchase cost.

Market Value

The present rate at which a service or asset is available for purchase or sale.

Net Income

Net income is the total amount of profit a company earns after subtracting all of its expenses, taxes, and costs from its total revenue.

Unlimited Liability

A legal structure in business where owners are personally liable for all the debts and obligations of the business.