A certain university issues parking permits to allow students to park on campus. The price of the
Question:
A certain university issues parking permits to allow students to park on campus. The price of the permit is set by college administrators at any price they choose; they do not consider market conditions. At the current price, some students complain that there aren't enough spaces for them to park.
1. Describe this situation in economic terms and describe what this implies about market equilibrium and the price of a parking permit.
2. Should the price of a permit be raised or lowered to fix this situation?
3. Use the supply and demand model to describe how a graph of the market for parking permits would be affected by a change in price. Do not submit a graph as part of your response, however.
Your response should be 2-3 full paragraphs
Gordon Rule Macro
Criteria | Ratings | Pts | |||||
---|---|---|---|---|---|---|---|
This criterion is linked to a Learning OutcomeDescription of the current situation and solution |
| 5 pts | |||||
This criterion is linked to a Learning OutcomeExplanation of Supply and Demand model. |
| 5 pts | |||||
This criterion is linked to a Learning OutcomeComposition and Grammar |
|
Introduction To Health Care Management
ISBN: 9781284081015
3rd Edition
Authors: Sharon B. Buchbinder, Nancy H. Shanks