Concerned about the political fallout from rising college tuition, the U.S. government decides to impose a price ceiling on tuition of $25,000 a student. If more colleges opened and drove the equilibrium price to $20,000 a student, of college education would emerge. The U.S. market for college education would be OA. a shortage; efficient OB. a shortage; inefficient OC. neither a surplus nor a shortage; efficient OD. a surplus; efficient OE. a surplus; inefficient
Concerned about the political fallout from rising college tuition, the U.S. government decides to impose a price ceiling on tuition of $25,000 a student. If more colleges opened and drove the equilibrium price to $20,000 a student, of college education would emerge. The U.S. market for college education would be OA. a shortage; efficient OB. a shortage; inefficient OC. neither a surplus nor a shortage; efficient OD. a surplus; efficient OE. a surplus; inefficient
Chapter4: Supply And Demand: An Initial Look
Section: Chapter Questions
Problem 8TY
Related questions
Question
Transcribed Image Text:Concerned about the political fallout from rising college tuition, the U.S. government decides to impose a price ceiling on tuition of $25,000 a student.
If more colleges opened and drove the equilibrium price to $20,000 a student,
of college education would emerge.
The U.S. market for college education would be
OA. a shortage; efficient
OB. a shortage; inefficient
OC. neither a surplus nor a shortage; efficient
OD. a surplus; efficient
OE. a surplus; inefficient
Next
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
Step by step
Solved in 2 steps
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, economics and related others by exploring similar questions and additional content below.Recommended textbooks for you
Microeconomics: Principles & Policy
Economics
ISBN:
9781337794992
Author:
William J. Baumol, Alan S. Blinder, John L. Solow
Publisher:
Cengage Learning
Microeconomics: Principles & Policy
Economics
ISBN:
9781337794992
Author:
William J. Baumol, Alan S. Blinder, John L. Solow
Publisher:
Cengage Learning
Principles of Microeconomics
Economics
ISBN:
9781305156050
Author:
N. Gregory Mankiw
Publisher:
Cengage Learning
