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

Question

Quizplus · Accepted Answer

When the price (tuition) increases and total revenue also increases, it indicates that the demand is inelastic. This means that the percentage change in quantity demanded is less than the percentage change in price, leading to an increase in total revenue.

If Brown University Increases Its Tuition and Then Its Tuition