Exam 5: Supply,demand,and Price: Applications

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 SAT scores.Enrollment at this school will likely be

When universities charge students less than the equilibrium tuition for admission,they have to impose some nonprice-rationing device.

Since most colleges and universities charge the same tuition to every student regardless of what time students choose to take their classes,

If a college sets its tuition __________ the equilibrium tuition,then it will have to use some form of nonprice-rationing device to determine who will be accepted for admission to the college.

-Refer to Exhibit 5-3 which shows the demand and supply of a college athlete.If the college is allowed to pay this student athlete its market equilibrium wage of $10,000,what is the consumers' surplus for the college that buys this one athlete's services at this wage?

Good weather in cities such as San Diego

Residents of cities with a reputation for good weather,ceteris paribus,

Refer to Exhibit 5-1,which shows supply and demand for freeway space at both 8 a.m. and 11 p.m.Which toll creates equilibrium at 11 p.m.?

The space on the freeway is fixed at any instant of time.A supply curve that shows this is

The higher the price of medical care in general,the lower the __________________ medical care and the ________________ specific items that make up medical care (such as,x-rays).

If there is typically bumper-to-bumper traffic on a freeway at 5 p.m.,we can reduce (or eliminate)the traffic congestion by

The price of good XYZ has a pricing pattern such that P = $50 on Monday through Thursday of every week,and P = $65 on Fridays.If speculators begin participating in the market for good XYZ,their actions will likely lead to a(n)______________ in the price of good XYZ on Monday through Thursday and a(n)_______________ in the price of good XYZ on Friday.

Suppose that the government provides a subsidy for the consumption of good X.The demand curve with the subsidy will lie to the ______________ of the demand curve without the subsidy,and the equilibrium price of good X will be __________ with the subsidy than without.

When the government enacts policies that lead to lower mortgage lending standards and lower interest rates,their actions can indirectly lead to higher home prices.

If the supply of aisle seats and middle seats on an airplane is the same,but the demand for aisle seats is greater than the demand for middle seats,then the equilibrium price of aisle seats will be less than the equilibrium price of middle seats.

Suppose that more people want to move from Miami to Phoenix than want to move from Phoenix to Miami.It is likely that U-Haul rates will be relatively ______________from Phoenix to Miami since the ___________________.

The price of a given good is likely to be less variable with speculators than it would be without speculators.

If the supply of aisle seats equals the supply of middle seats on an airplane,and the demand for aisle seats is _____________ than the demand for middle seats,then the equilibrium price of aisle seats will be ______________ the equilibrium price of middle seats.

A toll of $1 per car is imposed on a road regardless of time of day.If the toll creates equilibrium travel flows at the busiest time of day,it will create a __________ at all other times.

Suppose that the government provides a subsidy for the consumption of higher education.The equilibrium price of higher education will be ___________ with the subsidy than without because the demand curve with the subsidy will lie to the ______________ of the demand curve without the subsidy.