Question

In 2004, the University of California education system drastically cut enrollment due to significant state budget cuts and asked 7,600 applicants to defer enrollment for two years after completing two years at a community college. Tuition costs remained fixed by the state.

• Demonstrate the situation described with supply and demand curves, carefully labeling any excess supply or demand for college admission.
• What is the market solution to the excess demand for college?
• What is a possible reason the market solution was not pursued

Answer 1

& the the students market for college 1 be fixed ū who college means P O & Q* education, Quota of the number of to enrolled has been which below the bruce equilibrium number of students want enroll for education. This at al frice that students are willing to pay than the price that stradonts demands. This creates Exeer demand for college Market solution for Excers demand for college frice lenel which in the increase equates increased Quantity demanded with Quantity supplied. market solution Due to the fixed lend of Quota, the not more is Quantity uninerity admission is the pursued was