A community university charges lower tuition fees to provincial residents than to out -of -province nonresidents.This pricing strategy increases the profits of the community university.Using this information,we can conclude that out -of -province nonresidents must have a _____ demand for attending the community university than do residents.
A) less price-elastic
B) greater
C) lower
D) more price-elastic

Question

Quizplus · Accepted Answer

The fact that the community university charges lower tuition fees to provincial residents than to out-of-province nonresidents suggests that the demand for attending the university is more price-elastic among out-of-province nonresidents. If the demand were less price-elastic, the university would not need to charge a lower tuition fee to attract them. Therefore, the correct choice is A.

A Community University Charges Lower Tuition Fees to Provincial Residents