The university president believes that increasing student tuition by 5% will increase revenues. If the president is correct that revenues will increase, then the tuition increase will _____ the number of students enrolling by _____.
A) reduce; less than 5%
B) reduce; more than 5%
C) reduce; exactly 5%
D) increase; 5%

Question

Quizplus · Accepted Answer

If the tuition increase reduces the number of students enrolling by less than 5%, the overall revenue will still increase because the percentage increase in tuition outweighs the percentage decrease in enrollment.

The University President Believes That Increasing Student Tuition by 5