6. University admissions

Suppose the following graph shows the supply of and demand for admission to the University of Calgary, where supply represents the number of student openings and demand represents the number of students who want to attend UCalgary (that is, the number of student applications) at any given level of tuition. Use the graph to help you answer the questions that follow.

Note: Select and drag one or both of the curves to the desired position. Curves will snap into position, so if you try to move a curve and it snaps back to its original position, just drag it a little farther.

Admission to the University of CalgaryDemandSupply0246810127865523926130TUITION (Thousands of dollars)NUMBER OF STUDENTS (Thousands)DemandSupply

The equilibrium level of tuition at UCalgary is

per academic year. If UCalgary sets its tuition at this price, the number of student applications will be the number of openings available.

Now suppose that the tuition for UCalgary is set at $26,000. At this level of tuition, the number of openings available will be the number of student applications.

Suppose that in its latest issue, a popular magazine publishes information about universities in Canada. The magazine declares UCalgary to be Canada's worst party university (that is, the university with the lousiest party scene).

Adjust the previous graph to show the effect this will have on the market for admission to UCalgary, assuming that university students like to party.

The new equilibrium level of tuition at UCalgary is

per academic year.

If the magazine declares UCalgary to be Canada's worst party university and the tuition for UCalgary is set at $26,000, UCalgary will receive

applications for admission than there are openings

.