Ask Question
BusinessBusiness
4 December, 16:22

Get Smart University is contemplating an increase in tuition to enhance revenue. If GSU feels that raising tuition would enhance revenue, it is

a. assuming that the demand for university education is elastic

b. assuming that the demand for university education is inelastic.

c. assuming that the supply of university education is elastic.

d. ignoring the law of demand.

+2
Answers (1)
  1. 4 December, 19:56
    0
    Correct option is (b)

    Explanation:

    Price elasticity of demand is the law that states that proportion of percentage change in demand due to percentage change in price only and not any other factors. Demand is perfectly elastic if quantity demanded changes tremendously with change in price. Demand is inelastic if there is no change in quantity demanded with increase in price.

    Here, Get smart university plans to increase tuition fees assuming that there will be no change in demand for the seats offered by the university due to increase in price. So, it assumes that demand is inelastic.
Know the Answer?
Not Sure About the Answer?
Get an answer to your question ✅ “Get Smart University is contemplating an increase in tuition to enhance revenue. If GSU feels that raising tuition would enhance revenue, ...” in 📙 Business if there is no answer or all answers are wrong, use a search bar and try to find the answer among similar questions.
Search for Other Answers
You Might be Interested in
The normal distribution tends to be a better approximation of the distribution of total time for shorter projects where the critical path has relatively few activities. a) True b) False
Answers (1)
Suppose there is a simple two good economy that produces fish and cars. When the economy increases its production of fish from 0 to 15 tons of fish, it has a relatively small opportunity cost in terms of cars.
Answers (1)
Today, stacy is investing $18,000 at 6.72 percent, compounded annually, for 5 years. how much additional income could she earn if she had invested this amount at 7.15 percent, compounded annually?
Answers (1)
I dont know srh wd g5h h br5h5h5eb gb h5r c4 4 r 34efj 4gtr 243er
Answers (1)
A guitar manufacturer is considering eliminating its electric guitar division because its $83,720 expenses are higher than its $76,540 sales. The company reports the following expenses for this division.
Answers (1)
New Questions in Business
Kei produces results. he is scrupulously honest. he checks to see that his teammates have what they need. he always talks about his team's accomplishments, not his own. however, he fails to consider the impact of his company's actions on the public.
Answers (1)
Globalization increases the interdependency of the world's countries. Inflation in one country would most likely
Answers (1)
Push technology is used in a variety of Web-based advertising and marketing initiatives. True False
Answers (1)
Distribution Corporation collects 40 % of a month's sales in the month of sale, 55 % in the month following sale, and 5 % in the second month following sale.
Answers (1)
Which of the following is something that companies are likely to engage in with famous, well-publicized sports teams?
Answers (2)
Home » Business » Get Smart University is contemplating an increase in tuition to enhance revenue. If GSU feels that raising tuition would enhance revenue, it is a. assuming that the demand for university education is elastic b.
Sign Up Forgot Password?