Suppose that Simon Fraser University decides to raise tuition fees to increase the total revenue it receives from students. This policy works only if the demand for a Simon Fraser University education is
A)unit elastic.
B)inelastic.
C)elastic.
D)greater than the demand for a University of Western Ontario education.
E)perfectly elastic.

Question

Quizplus · Accepted Answer

If the demand for education is inelastic, an increase in tuition fees will lead to a smaller percentage decrease in quantity demanded, thus increasing total revenue.

Suppose That Simon Fraser University Decides to Raise Tuition Fees