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11. College admissions Suppose the following graph shows the supply of and demand for admission to Duke University, where supply represents the number of student

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11. College admissions Suppose the following graph shows the supply of and demand for admission to Duke University, where supply represents the number of student openings and demand represents the number of students who want to attend Duke (i.e., the number of student applications) at any given level of tuition. Use the graph to help you answer the questions that follow. You will not be graded on any adjustments made to the graph. Tool tip: Click and drag one or both of the curves. Curves will snap into position, so if you try to move a curve and it snaps back to its original position, just try again and drag it a little farther. ? Admission to Duke University 90 Supply 75 Demand Supply TUITION (Thousands of dollars) 45 8 Demand 15 12 16 20 24 NUMBER OF STUDENTS (Thousands) The equilibrium level of tuition at Duke is per academic year. If Duke sets its tuition at this price, the number of openings available will the number of student applications. Now suppose that the tuition for Duke is set at $30,000 by North Carolina's state assembly. At this level of tuition, the number of student applications will the number of openings available. Suppose that in its latest issue, a popular magazine publishes information about colleges in the United States. The magazine declares Duke to be America's worst party college (that is, the college with the lousiest party scene). Adjust the previous graph to show the effect this will have on the market for admission to Duke, assuming that college students like to party. The new equilibrium level of tuition at Duke is per academic year. els If the magazine declares Duke to be America's worst party college and the tuition for Duke is set at $30,000 by North Carolina's assembly, Duke will receive than there are openings. applications for admission

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