Question

"University A sets tuition at the equilibrium level based on price and then imposes entrance requirements in the form of minimum high school GPA and SAT scores. Enrollment at this school will likely be"

Answer 1

Answer:

Enrollment in this school will likely be below the equilibrium level.

While the price of tuition has been set at the equilibrium level, and as a result, the demand for tuition is also at the equilibrium level (the demand is the amount of students that want to enroll in university A), the amount of students that will enroll will likely be below equilibrium because the University is using non-pricing mechanisms to restrict demand: minimum GPA and SAT scores.