Question

3. Let’s look at the market of Clemson education (you can think of tuition as the price).

In each scenario, please draw the shift of demand or supply curve (label both x and y-axis properly to get the full credit). Additionally, please indicate what happens to the equilibrium price and quantity.

a. Clemson’s football team finishes number 1 in the nation. P*________ Q*_________ (increase: . decrease: .. no change: x)

b. University of South Carolina raises its tuition.

Is there a demand or supply shift in the market of University of South Carolina education? Why or why not? P*________ Q*_________ (increase: . decrease: .. no change: x)

c. South Carolina income rises. P*________ Q*_________ (increase: . decrease: .. no change: x)

d. Clemson housing becomes more affordable. P*________ Q*_________ (increase: . decrease: .. no change: x

Answer 1

a. If Clemson 's football team finishes number 1 in the nation, demand for Clemson's football team increases and price of Clemson's foot ball team will alsi increase. But quantity of Clemson's football team remains same
b. If University of South Carolina raises its tution, supply of University of South Carolina education will increases. If supply increases, price will decrease and quantity will also increase
C. If South Carolina income rises, demand for good increases, thereby price of good increases and quantity will also increase
D. Clemson's housing becomes more affordable price of houses will decrease and quantity of houses will increase