From 1970 to 2010, the real price of a college education increased, and total enrollment increased. Which of the following could have caused this increase in price and enrollment?
A) A shift to the right in the supply curve for college education and a shift to the left in the demand curve for college education.
B) A shift to the left in the supply curve for college education and a shift to the right in the demand curve for college education.
C) A shift to the left in the supply curve for college education and a shift to the left in the demand curve for college education.
D) none of the above

Question

Quizplus · Accepted Answer

A shift to the left in the supply curve for college education would cause an increase in price, while a shift to the right in the demand curve for college education would cause an increase in enrollment. Therefore, option B, which suggests this combination of shifts, is the most likely cause for the observed increase in both price and enrollment.

From 1970 to 2010, the Real Price of a College