If the University of Wisconsin increases its tuition and its tuition revenue decreases, the demand curve for attending the University of Wisconsin must be
A) elastic
B) inelastic
C) perfectly elastic
D) perfectly inelastic

Question

Quizplus · Accepted Answer

When the University of Wisconsin increases its tuition and sees a decrease in tuition revenue, it indicates that the demand for attending the university is elastic. This means that the percentage change in quantity demanded is greater than the percentage change in price, leading to a decrease in total revenue when prices are increased.

If the University of Wisconsin Increases Its Tuition and Its