Get Smart University is contemplating an increase in tuition to enhance revenue.If GSU feels that raising tuition would enhance revenue,they are
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 believes that raising tuition would increase their revenue, they are assuming that the demand for university education is inelastic. This means that even if the tuition increases, the quantity demanded of university education will not be significantly impacted, and GSU will still receive higher revenue from the increased tuition prices.

Get Smart University Is Contemplating an Increase in Tuition to Enhance