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 Full Marks Student accurately described both the current equilibrium situation, why it happened, and what needs to be done with price.

4 pts 4 pts. Student accurately explained the current situation and problem with pricing but either did not use economic terms or explain equilibrium.

3 pts 3 pts. Student only partially explained the economic situation and/or did not understand pricing.

2 pts 2 pts. Student did not explain the current situation or cause but did get the price change correct.

1 pts 1 pt. Student did not explain this portion correctly.

5 pts

This criterion is linked to a Learning OutcomeExplanation of Supply and Demand model.

5 pts Full Marks Student accurately used the supply and demand model to describe how a graph of the market for parking permits would be affected by a change in price.

4 pts 4 pts. Student accurately described how the market for parking permits would be affected by a change in price but did not accurately use the supply and demand model or return to equilibrium.

3 pts 3 pts. Student only partially described how the market for parking permits would be affected by a change in price and did not fully use the supply and demand model or return to equilibrium.

2 pts 2 pts. Student either did not describe how the market for parking permits would be affected by a change in price correctly or did not use the supply and demand model or return to equilibrium in the explanation.

1 pts 1 pt. Student did not explain this portion correctly.

5 pts

This criterion is linked to a Learning OutcomeComposition and Grammar

5 pts Full Marks Student submitted the grammarly.com assessment and provided a college level report correctly punctuated with good flow, title and format, proper paragraphs and free of spelling errors.

4 pts 4 pts. Student submitted the grammarly.com assessment and provided a college level report with good flow, only a few punctuation and spelling errors, and proper paragraphs.

3 pts 3 pts. Student did not submit (or submitted their own report twice) the grammarly.com assessment but provided a college level report with good flow, some punctuation and spelling errors, and proper paragraphs.

2 pts 2 pts. Student did not submit (or submitted their own report twice) the grammarly.com assessment and did not provide a college level report with good flow. There were numerous punctuation and spelling errors, and 1 or 2 sentence paragraphs.

1 pts 1 pt. Seriously?

Answer rating: 100% (QA)

In economic terms the situation described can be seen as a shortage of parking spaces due to the price of the parking permit being set without conside... View the full answer