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The market equilibrium for a business degree in higher education can be written as: (, ) = (, ), is the price at which quantity is demanded and is an external factor capturing labour market conditions; is the price to supply quantity while is an external factor capturing the minimum wage for teaching staff. We assume that (, ) 0, (, ) > 0, (, ) > 0, (, ) < 0. (a) Derive the general expression for . Interpret. 1 (b) We assume that (, ) = 80 and (, ) = 40 /(1 + ). Calculate the equilibrium quantity and price . (c) Calculate the consumer surplus. How does it depend on market conditions ? On the minimum wage ?