From the 1970s through the 1990s, the relative price of a university education has increased greatly. During the same time period, university enrollment has also increased. This evidence suggests that during this time period most likelyGroup of answer choicesthe demand curve for a university education has shifted leftward.the demand curve for a university education has shifted rightward.the supply curve for a university education has shifted leftward.the supply curve for a university education has shifted rightward.

The university official is claiming that the demand for admission to the university is not affected by changes in tuition prices. She supports this claim by stating that even though the university has increased its tuition fees over the past 15 years, the number and quality of students applying have not decreased. However, we cannot fully accept this argument based on the evidence provided. The official does not observe a demand curve, which is a graphical representation of the relationship between price and quantity demanded. Without a demand curve, it is difficult to determine the price elasticity of demand, which measures how responsive the quantity demanded is to changes in price. There could be other factors at play that explain why the number and quality of students applying have not decreased despite the increase in tuition fees. One possibility is the existence of potential substitutes. In other words, students may have alternative options to consider when choosing a university. If these alternatives offer similar quality education at a lower cost, students may choose those options instead. To better understand this, let's imagine you are a middle school student looking to buy a new video game. If the price of your favorite game doubles, you might still be willing to buy it because you really enjoy playing it and there are no other games that offer the same experience. However, if another game with similar features and lower price becomes available, you might choose to buy that game instead. This is similar to how students might consider other universities if they offer similar quality education at a lower cost. In conclusion, while the university official's argument suggests that the demand for admission is not affected by tuition prices, we need more information to fully accept this claim. The existence of potential substitutes and the absence of a demand curve make it difficult to determine the price elasticity of demand for university admissions.

Which of the following causes the demand curve to shift to the right?*1 pointA. A reduction in the size of populationB. An increase in the income of the buyerC. The availability of substitutesD. A decrease in price of the good

An increase in price shifts the demand curve to the left.Group of answer choicesTrueFalse

Market EquilibriumWhich of the following is a correct example of supply and demand shifting in different (opposite) directions?Increase in costs of setting up a new college and increase in demand for higher educationIncrease in costs of setting up new college and decrease in demand for higher educationDecrease in costs of setting up new college and no change in demand for higher educationIncrease in cost of setting up new college and no change in demand for higher education

If the demand curve for a good is horizontal and the price is positive, then a leftward shift of the supply curve results inGroup of answer choicesa price of zero.an increase in price.a decrease in price.no change in price.