Entry Requirements Raise Barriers to University Access

Steps:

• Assume D₂ lies left of D₁, signaling decreased demand for university places.
• Recall demand shifts from non-price factors like tastes, expectations, or access barriers.
• Evaluate options: price changes cause movement along curve; others may shift it.
• Identify C as raising entry standards, reducing qualified applicants and thus demand.

Why C is correct:

• Per demand theory, stricter entry requirements (e.g., higher A-level grades) act as a barrier, decreasing effective demand by limiting eligible buyers.

Why the others are wrong:

• A: Lower youth unemployment boosts job alternatives, shifting demand left—but C specifies entry barriers, a distinct access factor.
• B: Fee reduction lowers price, causing movement along D₁, not a shift.
• D: Higher graduate earnings raise expected benefits, shifting demand right to increase it.

Final answer: C