If a college sets its tuition __________ the equilibrium tuition,then it will have to use some form of nonprice-rationing device to determine who will be accepted for admission to the college.
A) above
B) below
C) equal to
D) all of the above

Question

Quizplus · Accepted Answer

If tuition is set below the equilibrium level, demand will exceed supply, leading to a shortage. The college will need to use nonprice-rationing methods, such as selective admissions criteria, to allocate the limited spots available.

If a College Sets Its Tuition __________ the Equilibrium Tuition,then