3.Suppose that you observed the following set of data: Average Business School tuition: $30,000 Average Salary for non-MBA’s: $50,000 per year Average MBA salary: $90,000 per year. The length of an MBA program is 2 years and is assumed that and MBA will have a working career of 20 years after graduation. Further, suppose that, instead of going to get an MBA, 2 you could keep your current non-MBA job and invest what you could have used to pay for tuition, risk free, at 4% per year. SHOW ALL YOUR WORKING. a) Is this set of data consistent with market equilibrium? Explain. b) If your answer to (a) is no, how will markets adjust?

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