Exhibit 5-2

-Refer to Exhibit 5-2. If the tuition is set at $60 there will be
A) a shortage at 10 a.m. and a surplus at 8 a.m.
B) a surplus at 10 a.m. and a shortage at 8 a.m.
C) equilibrium at both 10 a.m. and 8 a.m. because the price is half-way between their individual equilibria.
D) none of the above

Question

Exhibit 5-2
 
-Refer to Exhibit 5-2. If the tuition is set at $60 there will be
A) a shortage at 10 a.m. and a surplus at 8 a.m. 
B) a surplus at 10 a.m. and a shortage at 8 a.m. 
C) equilibrium at both 10 a.m. and 8 a.m. because the price is half-way between their individual equilibria. 
D) none of the above

Quizplus · Accepted Answer

At a tuition of $60, demand exceeds supply at 10 a.m. (indicating a shortage), while supply exceeds demand at 8 a.m. (indicating a surplus), as the specific quantities at these prices and times are not provided in the question, the general principle of economic equilibrium applies.

Exhibit 5-2 -Refer to Exhibit 5-2. If the Tuition Is Set at Tuition