1/ how would an economist explain a shortage of parking spaces on campus at Umass Boston?

a. D is high because there are too many students

b. the price of parking is below the equilibrium price

c. S fell because more students were accepted

d. D is high because students drive to campus

2/ suppose the supple curve for some good is completely vertical. If demand increases, what will happen to P and Q?

a. Both increase

b. both decrease

c. P increases, no change in Q

d. Q increases, no change in P

e. neither P nor Q change

3/ Two of the multiple-choice questions asked about shortages (#1 and #2). The first question asked what an economist would say is the cause of a shortage of parking. Most of the answers involved whether D was high or S was low.

(A) Why are the answers about S and D wrong? In other words, why does high D or low Snot usually lead to a shortage of products? What does cause a shortage? Explain.

(B) The next question asks how the marketusually adjust if there is a shortage. What is the right answer? How is a shortage usually eliminated?