Economics Assessment 3 A-Day: Supply and Demand

What is the effect on the demand curve of there being more scholarships available today than there were 50 years ago?

the demand curve shifts to the right.

What is the effect on the supply curve as universities spend more on their amenities than they did 50 years ago?

the supply curve shifts to the left.

Ceteris paribus, if demand shifts out, what happens to equilibrium price?

equilibrium price increases

Ceteris paribus, if supply shifts out, what happens to price?

price decreases.

Is a market ever more efficient than when it is in equilibrium?

no

When is the market at max efficiency?

at equilibrium

What does price do to consumers and producers?

communicates between consumers and producers.

What does a profitable price communicate to producers?

that they should increase their supply.

What does a price that forces a loss to producers communicate?

that they should decrease their supply.

What is the value of a scholarship?

face value of the scholarship + interest you don't have to pay