The price elasticity of demand for higher education is about 1.4. A 5% increase in tuition would lead to:
A. a decrease in enrollment by 7%.
B. a decrease in enrollment by 6.4%.
C. a decrease in enrollment by 3.6%.
D. a decrease in enrollment by 2.8%.
Answer: A
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The consumption function illustrates that:
a. saving increases as disposable income decreases. b. consumption increases as saving increases. c. consumption increases as disposable income increases. d. consumption increases as disposable income decreases. e. consumption increases as investment increases.
Answer the following statements true (T) or false (F)
1. Under the gold standard, a nation experiencing chronic trade deficits had to increase its money supply while reducing its holdings of gold. 2. After World War II, most nations adopted some type of fixed or controlled exchange rate system. 3. Under a fixed or controlled exchange rate system, if the United States wanted to increase the value of the dollar, it could buy foreign currencies with dollars. 4. Since World War II, the importance of gold in international exchange has increased. 5. The Bretton Woods system included the idea of fixed exchange rates.
Costs should always be evaluated before determining benefits.
A. True B. False C. Uncertain
One advantage of a corporation over a sole proprietorship is:
A. avoidance of double taxation. B. greater accountability. C. ease of formation. D. greater ability to obtain funds.