Facing stiff competition, Hendrix College, a small liberal arts institution in Conway, Ark
, decided two years ago to bolster its academic offerings, promising students at least three hands-on experiences outside the classroom, including research, internships and service projects. Although it raised tuition and fees by 29 percent, enrollment in the freshman class rose by 37 percent.
Source: Jonathan D. Glater and Alan Finder, "In New Twist on Tuition Game, Popularity Rises With the Price," New York Times, December 12, 2006
Based on the information above, the demand for Hendrix College education is
A) relatively elastic.
B) unit elastic.
C) perfectly elastic.
D) More information is needed to answer the question.
A
You might also like to view...
The figure above shows how the PPF for cell phones and new cell-phone factories can expand. In the figure, if the economy chose the point on this year's PPF that is below point K, the next year's PPF would
A) shift inward along the vertical axis. B) shift outward along the horizontal axis farther than the new PPF shown in the figure. C) shift outward along the vertical axis, not along the horizontal axis. D) shift outward along the horizontal axis, but not as far as the new PPF shown in the figure. E) shift inward along the horizontal axis. The figure above shows Liz's and Joe's production possibilities for Salads and Smoothies.
According to your authors, the model of perfect competition
A) is an accurate description of real-world markets. B) obscures how plan coordination occurs in the real world. C) explains how economic profits can exist over time. D) explains economic losses better than economic profits.