The situation in economic terms is that there is a shortage of parking space.
<h3>How to illustrate the information?</h3>
1. From the information, it was stated that certain university issues parking permits to allow students to park on campus and the <em>price</em> of the permit is set by college administrators at any price they choose.
Therefore, the situation in economic terms is that there is a shortage of parking space.
2. The price of a permit be raised to fix this situation. This will make more space available.
3. The graph of the market for parking permits would be affected by a change in price as it will help to bring about an increase in supply when the permit is increased.
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