Exhibit 5-2

-Refer to Exhibit 5-2. If the tuition is set at $40, there will need to be some kind of non-price rationing device used for
A) 8 a.m. classes.
B) 10 a.m. classes.
C) a and b
D) none of the above

Question

Exhibit 5-2
 
-Refer to Exhibit 5-2. If the tuition is set at $40, there will need to be some kind of non-price rationing device used for
A) 8 a.m. classes. 
B) 10 a.m. classes. 
C) a and b 
D) none of the above

Quizplus · Accepted Answer

If the tuition is set at $40, which is likely below the equilibrium price, there will be excess demand for both 8 a.m. and 10 a.m. classes, necessitating a non-price rationing device for both.

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