If parking spaces on a college campus are scarce, with quantity demanded during the "peak" hours, from 8 a.m.to 11 a.m., far greater than the number of spaces, an economist would propose as an efficient solution,
A) lowering the parking fees during those hours to compensate students for the longer search time.
B) charging the same parking fees during all hours of the school day.
C) raising parking fees during the peak hours to encourage some students to schedule classes during other hours when parking fees are lower.
D) hiring more security guards to patrol for illegal parkers.

Question

Quizplus · Accepted Answer

Raising parking fees during peak hours would encourage some students to schedule classes during other hours when parking fees are lower, thereby reducing the demand for parking during peak hours and making parking more efficient. This would help ensure that the available number of parking spaces is used most effectively.

If Parking Spaces on a College Campus Are Scarce, with Quantity