When universities announce a large tuition increase and follow it with an announcement that more financial aid will be available, they are assuming that students who pay full tuition:
A. have elastic demand and students who use financial aid have inelastic demand.
B. have inelastic demand and students who use financial aid have elastic demand.
C. view a college education as a normal good and students who use financial aid view it as an inferior good.
D. view a college education as an inferior good and students who use financial aid view it as a normal good.
Answer: B
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