A recent study at a liberal arts college concluded that demand elasticity is 0.91 for college courses. The administration is considering a tuition increase to help balance the budget. An economist might advise the school to:
a. decrease tuition in order to increase revenue by boosting enrollment
b. increase tuition in order to increase revenue.
c. leave tuition unchanged as a change in tuition is unlikely to enhance the school's budget by increasing revenue.
d. decrease tuition because demand for courses is elastic.
b
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According to the classical model
A) long-term unemployment is unavoidable. B) unemployment is a temporary phenomenon. C) unemployment only exists during periods of war. D) the natural rate of unemployment is zero.
In a dynamic economy under ideal conditions:
a. the unemployment rate should be near zero. b. some unemployment would be present due to workers temporarily being out of work while changing jobs. c. unemployment would tend to move upward slightly as prices increased. d. unemployment would tend to move slightly downward as unemployment compensation benefits increased.
What measures would not lower infant mortality rates in the United States?
a. Prenatal care programs in low-income neighborhoods b. Emphasis on improving infant health during the post-neonatal period c. Reduced drug use among expectant mothers d. Reducing the rate of stillbirths e. Delaying childbearing beyond the teen years
Empirical studies suggest that when a large number of firms are present in a market, prices are usually ________ and profits are usually ________ than when there are only a few firms in a market.
A. lower; higher B. lower; lower C. higher; higher D. higher; lower