Problem
I. Do you think a cap (price ceiling) on tuition is a good idea. Discuss how a tuition maximum might affect quantity demanded, quantity supplied, and the quality of classes at their school. Explain your answer by using the economic theories you learnt from the class.
II. Suppose you play in a band. Your band has a steady gig with a bar that gives you the cover charge without taking a cut. You and your band are interested in increasing the money you make from this gig and are talking about changing the cover charge (for each person). Should you increase it or decrease it? (hint: think about the elasticity). Explain your answer in details.