The following assignment is required to pass this course. It is worth 15 points and counts toward 15% of your final grade.
Here is the question:
A certain university issues parking permits to allow students to park on campus. The price of the permit is set by college administrators at any price they choose; they do not consider market conditions. At the current price, some students complain that there aren’t enough spaces for them to park.
1. Describe this situation in economic terms and describe what this implies about market equilibrium and the price of a parking permit.
2. Should the price of a permit be raised or lowered to fix this situation?
3. Use the supply and demand model to describe how a graph of the market for parking permits would be affected by a change in price. Do not submit a graph as part of your response, however.
Please type your response in Word and upload in the dropbox. Your response should be 2-3 full paragraphs with attention paid to grammar as well as content. In order to receive FULL CREDIT for the grammar portion, visit https://www.grammarly.com/Links to an external site. submit your report to them (it is free), and then submit THEIR response along with your CORRECTED report to this dropbox.
So, your will have two submissions to this dropbox – their response (pdf or screenshot copied to a word doc) and your FINAL report.
