Facing stiff competition, Hendrix College, a small liberal arts institution in Conway, Ark
, decided two years ago to bolster its academic offerings, promising students at least three hands-on experiences outside the classroom, including research, internships and service projects. Although it raised tuition and fees by 29 percent, enrollment in the freshman class rose by 37 percent.
Source: Jonathan D. Glater and Alan Finder, "In New Twist on Tuition Game, Popularity Rises With the Price," New York Times, December 12, 2006
Based on the information above, the demand for Hendrix College education is
A) relatively elastic.
B) unit elastic.
C) perfectly elastic.
D) More information is needed to answer the question.
A
You might also like to view...
What is the relationship between marginal cost and marginal revenue when a single-price monopoly maximizes profit?
What will be an ideal response?
Rank-order the following three gifts in terms of potentially providing the highest utility to the lowest: 1 ) A new video game; 2 ) A gift card to a video game store; 3 ) Cash
A) 1, 2, 3 B) 2, 3, 1 C) 3, 2, 1 D) 1, 3, 2
Why does the U.S. government most likely distribute military spending to bases across the country?
a. To encourage support of defense spending b. To limit the power of defense contractors c. To meet the demands of special interest groups d. To ensure that defense budgets are adequate
A competitive market is one in which:
A. government oversees its operation. B. individual sellers and buyers have a lot of influence over market price. C. fully informed price-taking buyers and sellers easily trade a standardized good. D. few large sellers compete for a majority of the market share.