Concerned about the political fallout from rising college tuition, the U.S. government decides to impose a price ceiling on tuition of $25,000 a student. If more colleges opened and drove the equilibrium price to $20,000 a student, of college education would emerge. The U.S. market for college education would be OA. a shortage; efficient OB. a shortage; inefficient OC. neither a surplus nor a shortage; efficient OD. a surplus; efficient OE. a surplus; inefficient

Concerned about the political fallout from rising college tuition, the U.S. government decides to impose a price ceiling on tuition of $25,000 a student. If more colleges opened and drove the equilibrium price to $20,000 a student, of college education would emerge. The U.S. market for college education would be OA. a shortage; efficient OB. a shortage; inefficient OC. neither a surplus nor a shortage; efficient OD. a surplus; efficient OE. a surplus; inefficient

Exploring Economics

8th Edition

ISBN:9781544336329

Author:Robert L. Sexton

Publisher:Robert L. Sexton

Chapter4: Demand, Supply, And Market Equilibrium

Section: Chapter Questions

Problem 21P

See similar textbooks

Similar questions

What is the relationship between quantity Demanded and quantity supplied at equilibrium? What is the relationship when there is a shortage? What is the relationship when them is a surplus?
The following table summarizes information about the market for principles of economics textbooks: Price Quantity Demanded per Year Quantity Supplied per Year $45 4,300 300 55 2,300 700 65 1,300 1,300 75 800 2,100 85 650 3,100 What is the market equilibrium price and quantity of textbooks? To quell outrage over tuition increases, the college places a $55 limit on the price of textbooks. How many textbooks will be sold now? While the price limit is still in effect, automated publishing increases the efficiency of textbook production. Show graphically the likely effect of this innovation on the market price and quantity.
The following table summarizes information about the market for principles of economics textbooks: What is the market equilibrium price and quantity of textbooks? To quell outrage over tuition increases, the college places a $55 limit on the price of textbooks. How many textbooks will be sold now? While the price limit is still in effect, automated publishing increases the efficiency of textbook production. Show graphically the likely effect of this innovation on the market price and quantity.
Which of the following changes in the financial market will lead In an increase in the quantity of loans made and received: a rise in demand a fall in demand a rise in supply a fall in supply