For questions (c) and (d): When tuition at State College was $11,000 per semester, many classes were unfilled. When tuition decreased to $9,000 per semester, the number of students who wanted to enroll in each class equaled the number of seats available.
(c) When tuition was $11,000,
A) there was excess demand.
B) there was greater consumer surplus.
C) there was greater producer surplus.
D) the market for State College was inefficient.
E) State College could not cover its operating costs.
(d) By decreasing tuition to $9,000, State College
A) eliminated the excess demand that existed when tuition was $11,000.
B) quantity supplied equals quality demanded.
C) became a centrally planned economy.
D) violated the rule that, in equilibrium, there is no tendency to change.
E) changes in demand equals changes in quantity demanded.