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 revenue, it should ________ tuition because the demand for education at this university is ________. A) raise; elastic
B) not raise; elastic
C) raise; inelastic
D) not raise; inelastic
C
You might also like to view...
Suppose Congress passes a one-time tax refund of all taxes paid by firms in an industry last year. This will lead to a drop in output price in the industry.
Answer the following statement true (T) or false (F)
Exchange rates under the Bretton Woods system were determined by relative supplies of gold held by countries within the system
Indicate whether the statement is true or false
A firm currently employs five units of capital. When the firm adds a sixth unit of capital, it is able to reach a lower average cost for a greater quantity of output
What does this tell you about the shape of the long-run average cost curve and are economies of scale occurring? Explain briefly. Does this necessarily imply increasing or decreasing returns to scale in production or is it ambiguous? Explain briefly.
A network externality exists
a. in the television industry b. outside the television industry c. whenever an increase in the size of a network increases its value to current and potential members d. whenever an increase in the size of a network increases its average total cost of production e. whenever an increase in the size of a network increases its total cost of production