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)equal to or 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 nonprice-rationing methods, like selective admissions, to allocate limited spots.

If a College Sets Its Tuition __________ the Equilibrium Tuition