Data from the registrar's office at Gigantic State University indicate that over the past 20 years tuition and enrollment have both increased. From this information we can conclude that:
A. higher education is an exception to the law of demand.
B. the supply of education provided by GSU has also increased over the 20-year period.
C. school-age population, incomes, and preferences for education have changed over the 20-
year period.
D. GSU's supply curve of education is downsloping.
Answer: C
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In a market undergoing technological change, firms that
A) adopt the new technology temporarily incur an economic loss. B) adopt the new technology temporarily make an economic profit. C) do not adopt the new technology temporarily make an economic profit. D) do not adopt the new technology increase their market share. E) do not adopt the new technology continue to make a normal profit.
On the graph above, at the point where quantity demanded equals quantity supplied (let's call it point A), the economy has reached its ________
A) general equilibrium, and barring any shocks, it will not move from A B) long-run equilibrium, and barring any shocks, it will not move from A C) short-run equilibrium, and even without any shocks, it may move away from A D) short-run equilibrium, and barring any shocks, it will not move from A E) none of the above