Exhibit 5-2

-Refer to Exhibit 5-2. If the tuition is set at $70 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 10 a.m. and a surplus of seats at 8 a.m.
D) equilibrium at 10 a.m. and a shortage of seats at 8 a.m.

Question

Exhibit 5-2
 
-Refer to Exhibit 5-2. If the tuition is set at $70 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 10 a.m. and a surplus of seats at 8 a.m. 
D) equilibrium at 10 a.m. and a shortage of seats at 8 a.m.

Quizplus · Accepted Answer

If the tuition is set at $70, it implies that the demand and supply are balanced at 10 a.m., leading to equilibrium, while at 8 a.m., the supply exceeds demand, resulting in a surplus of seats.

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