The state legislature has cut Gigantic State University's appropriations. GSU's Board of Regents decides to increase tuition and fees to compensate for the loss of revenue. The board is assuming that the:
A. demand for education at GSU is elastic.
B. demand for education at GSU is inelastic.
C. coefficient of price elasticity of demand for education at GSU is unity.
D. coefficient of price elasticity of demand for education at GSU is greater than unity.
Answer: B
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How many people are unemployed if the employment ratio is 75%, there are 90 million people employed, and there are 20 million people not in the labor force?
A) 20 million B) 10 million C) 5 million D) 0 million
When interdiction efforts manage to stem the flow of illegal drugs into the United States, assuming no change in demand, the price of these substances rises. This price increase leads to more crime as addicts attempt to maintain their now more-expensive habits. Economists call this side-effect of the drug business
a. the illusion of rationality. b. an externality. c. the cost disease of personal services. d. inflation. e. unemployment.