Entrance Requirements Reduce Eligible Buyers, Shifting Demand Left

Steps:

• Demand shifts left when non-price factors like buyer population decrease.
• Higher A-level requirements limit qualified applicants, reducing demand for places.
• Price changes like fees cause movement along the curve, not shifts.
• Diagram shows D2 as leftward shift from D1, matching reduced eligibility.

Why C is correct:

• Increased entrance standards shrink the pool of potential students, decreasing demand quantity at every price per the determinant of number of buyers in demand theory.

Why the others are wrong:

• A: Lower youth unemployment raises job alternatives, potentially shifting demand left, but does not restrict eligibility like requirements.
• B: Fee decrease lowers price, increasing quantity demanded along D1, not shifting to D2.
• D: Identical to B; fee reduction moves along the curve without shifting.

Final answer: C