A lot of universities are thinking implementing a fee structure under which different university degree programs might charge very different fees. You will be consulted to advise them on these differential fee structures.

1.universities are planning to charge higher fees for programs for which there is higher demand (e.g. business schools or education).

2.universities are planning to charge higher fees for programs that cost more to produce (e.g. more for medical schools).

a. Explain carefully how the new system would change the decision-making of students in a university, and what it would do to the overall offering of courses and majors over time. (choose one of them)

b. From a fairness or equityviewpoint for society, which method (the one you picked or no fee differentials by courses) would you argue is better? Provide some supporting arguments for youropinion.

c. From an efficiencyviewpoint for society, is this system an improvement compared to the most prevalent current system in Canada, where all courses are charged identical fees?

Be sure to explain your reasoning fully and completely.

d. What is your recommendation? Is the potential system you chose in part a) a good system for students(as opposed to society)? Justify your answer.