Microeconomics
Microeconomics
13th Edition
ISBN: 9781337617406
Author: Roger A. Arnold
Publisher: Cengage Learning
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Chapter 5.4, Problem 1ST
To determine

The change in demand.

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Charter schools in Florida use a lottery to determine which students get in. This means that__________________________________. An auction in this case would mean that:   There is often a shortage of seats at charter schools; the families who place the highest value on charter school education would be more likely to get a spot. Families who would like to pay for the right to get into charter schools do not have the opportunity to act on that desire; the price of a seat would rise from zero to some price above zero. Florida charter schools are not maximizing revenue from this system; Florida charter schools would earn greater revenue over time. An auction would create an efficient outcome in the market for charter school seats; An arguably “unfair” market outcome could take place. All of the above.
The bar exam for lawyers is written by practicing lawyers. Why might having practicing lawyers write the exam limit the entry of new lawyers into the profession? Why might they want to limit entry?
True or False and explain why. A city that is facing a shortage of teachers announces a plan to provide housing subsidies for its teachers. These subsidies will reduce the cost of living in the city for several hundred teachers. This program will result in an increase in the employment of teachers in the city.
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