Refer to exhibit 5 1 which shows supply and demand

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16. Refer to Exhibit 5-1, which shows supply and demand for freeway space at both 8 a.m. and 11 p.m. Suppose that thegovernment decides to set the money price of driving on the freeway at zero, but creates programs that encourage driversto carpool. If the carpooling program is sufficiently successful to eliminate the shortage of freeway space at 8 a.m.,graphically the result of the increase in carpooling would be aa. rightward shift of the supply of freeway space curve.b.leftward shift of the demand for freeway space curve from D8a.m.to D11p.m.c.movement up along D8a.m.to the point where D8a.m.intersects the supply curve.d. leftward shift of the supply of freeway space curve.ANSWER:b
17. The demand for seats in 10 a.m. classes at the university is higher than the demand for seats in 8 a.m. classes. Thesupply of seats is fixed. If the university prices classes at the price required to achieve equilibrium at 10 a.m., there will beb
18. The demand for seats in 10 a.m. classes at the university is higher than the demand for seats in 8 a.m. classes. Thesupply of seats is fixed. If the university can only charge a single price and wishes to maximize the total number of seatspurchased during the day, it should set the pricea
Exhibit 5-219. Refer to Exhibit 5-2. If the tuition is set at $60 there will be
a
20. Refer to Exhibit 5-2. If the tuition is set at $40, there will need to be some kind of non-price rationing device used fora. 8 a.m. classes.b. 10 a.m. classes.c. a and bd. none of theaboveANSWER:c
21. Refer to Exhibit 5-2. If the tuition is set at $70 there will bec

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Term
Spring
Professor
BassamY.Yousif

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