Exhibit 5-2

Refer to Exhibit 5-2. If the tuition is set at $50 there will be

Question

Exhibit 5-2

Refer to Exhibit 5-2. If the tuition is set at $50 there will be

Quizplus · Accepted Answer

At a tuition rate of $50, the quantity demanded at 8 a.m. is 60 while the quantity supplied is only 40, resulting in a shortage of seats. However, at 10 a.m., the quantity demanded is only 20 while the quantity supplied is 40, resulting in a surplus of seats. Therefore, there is equilibrium at 8 a.m. with a shortage of seats and equilibrium at 10 a.m. with a surplus of seats, making the best choice D.

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