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From the demand matrix, we can see that school A's capacity will never be used up, but school B's will in some scenarios. For example,

From the demand matrix, we can see that school A's capacity will never be used up, but school B's will in some scenarios. For example, when it has demand 110, 30 students cannot be served; when it has demand 90, 10 students cannot be served. Half of those students who want to choose H but cannot be served will go to school A and pay A's price there if A still has open seats. The other half will leave the market (for instance, because they do not like school A and would rather to go to a driving school in a neighboring town)

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