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 is 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 when meeting their office hours than instructors at university A.
D) a and c
E) none of the above

Question

Quizplus · Accepted Answer

The larger gap between higher equilibrium tuition and lower student tuition at university B suggests that the demand for attending university B is higher than university A. This does not necessarily mean that the supply of openings is larger at university A or that there is a difference in punctuality among instructors.

The Gap Between the Higher Equilibrium Tuition and Lower Student