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Mariana
2 months ago
10

A university conducts a survey of students, which shows that a 10 percent tuition hike would lead to a 7 percent decrease in the

enrollment. If the university wants to increase its total revanue it should tuition because the demand for education at this university is ______________.
Business
1 answer:
marusya05 [3.7K]2 months ago
6 0

Response:

Option A

Clarification:

Complete Query

A university surveys its students, finding that a 10 percent increase in tuition would result in a 12 percent drop in enrollment. If the aim is to boost overall revenue, the university should ________ tuition because the demand for education here is ________.

A) not increase; elastic   B) increase; inelastic   C) not increase; inelastic   D) increase; elastic

Solution -

The demand for college education is elastic, meaning changes in tuition significantly influence demand. Raising tuition leads to a drop in enrollment, indicating that demand is not stable based solely on quality. Hence, the demand will not rise with a tuition increase, showing elasticity in demand.

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