If the board of regents of a major state university system plans to raise tuition in order to increase revenues, the regents must believe student demand is
A) elastic.
B) inelastic.
C) of unitary elasticity.
D) perfectly elastic.

Question

Quizplus · Accepted Answer

If the board of regents plans to raise tuition to increase revenues, they must believe that student demand is inelastic. This means that the percentage decrease in the quantity demanded will be less than the percentage increase in price, leading to an increase in total revenue.

If the Board of Regents of a Major State University