At an urban college where most students commute to classes, there are 8,000 parking spaces for students. All students pay $150 a semester for a pass that allows them to park in any one of those 8,000 spaces. Between 8AM-1PM there are always students waiting in the parking lots for spaces to open up. Students attending classes during this time are always complaining about how difficult it is to find a place to park. Between 5PM-9PM there are always a large number of empty spaces in the parking lots. Students who attend classes at night never have a problem parking.
Illustrate the parking situation for these two different times of day using Supply and Demand Curves.
Draw seperate graphs for the day and night students.
(Hint: Supply is fixed. Are these "markets" in equilibrium? Explain.)