Activity 3—Campus Parking Type: In-class assignment Topics: Demand, supply, disequilibrium, shortage, rationing Materials needed: A shortage of student parking on campus Time: 35 minutes Class limitations: Works in large lectures or small classes, if there is a campus parking problem. Purpose Nothing seems to generate more heated discussion than campus parking. If your school has a parking shortage this assignment brings the ideas of price rationing and resource allocation to an issue close to the students’ hearts. A. K. Sen’s parable of the bamboo flute is a good introduction to this assignment: An artist makes a beautiful instrument that becomes famous throughout the country. A number of claimants arise, each of whom argues that they deserve the flute: the artist who created it, the most talented musician, the poorest musician, the neediest citizen, the hardest working musician, etc. Who deserves the flute? Students will have different opinions on who is most deserving but many will accept a market solution—the person who is willing to pay the most (who has the highest marginal benefit, given the existing distribution of wealth and income). The allocation of campus parking spots makes a nice parallel. Instruction Ask the class to answer the following questions. Give them time to write an answer to a question, then discuss their answers before moving to the next question.