If parking spaces on a college campus are scarce, with quantity demanded during the "peak" hours, from 8 a.m. to 11 a.m., far greater than the number of spaces, an economist would propose as an efficient solution,

Question

Quizplus · Accepted Answer

Raising parking fees during the peak hours would encourage some students to schedule classes during other hours when parking fees are lower, thereby reducing the quantity demanded during the peak hours and ensuring that those who do park during that time are willing to pay the higher fee. This would create a more efficient use of the limited parking spaces available. The other options either do not address the issue of limited parking spaces or do not create an efficient solution.

If Parking Spaces on a College Campus Are Scarce, with Quantity