Get Smart University is contemplating an increase in tuition to enhance revenue.If GSU feels that raising tuition would enhance revenue,it is
A)ignoring the law of demand.
B)assuming that the demand for university education is elastic.
C)assuming that the demand for university education is inelastic.
D)assuming that the supply of university education is elastic.

Question

Quizplus · Accepted Answer

If GSU assumes that raising tuition would enhance revenue, it is assuming that the demand for university education is inelastic, meaning that students will still enroll in GSU even if tuition prices increase. If the demand for university education were elastic, students may choose more affordable options, causing a decrease in enrollment and revenue despite the increase in tuition prices.

Get Smart University Is Contemplating an Increase in Tuition to Enhance