If a university charged a lower price for tuition during summer school than during the regular session, in search of added total revenue,
A)administrators likely believe that demand is more elastic during summer school than during the regular session.
B)administrators likely believe that demand is less elastic during summer school than during the regular session.
C)it indicates nothing about likely differences in the elasticity of demand during summer school than during the regular session.
D)administrators likely believe that demand is both lower and less elastic during summer school than during the regular session.

Question

If a university charged a lower price for tuition during summer school than during the regular session, in search of added total revenue,
A)​administrators likely believe that demand is more elastic during summer school than during the regular session.
B)​administrators likely believe that demand is less elastic during summer school than during the regular session.
C)​it indicates nothing about likely differences in the elasticity of demand during summer school than during the regular session.
D)​administrators likely believe that demand is both lower and less elastic during summer school than during the regular session.

Quizplus · Accepted Answer

Charging a lower price for tuition during summer school indicates that the administrators believe demand is more elastic during summer school than during the regular session. This means that students are more sensitive to changes in price during summer school and may be more likely to enroll if the price is lower. By offering a lower price, the university hopes to increase enrollment and generate additional revenue.

If a University Charged a Lower Price for Tuition During