A law school conducts a survey of graduating law students in order to study whether a tuition increase would be profitable. The survey results indicate that a 5% increase in tuition would lead to a 2% decrease in enrollment. If the law school wants to increase its total revenue, it should ________ tuition because the demand for Law School enrollment is ______.A) Increase; elasticB) Decrease; elasticC) Increase; inelasticD) Decrease; inelasticE) None of the above

A law school conducts a survey of graduating law students in order to study whether a tuition increase would be profitable. The survey results indicate that a 5% increase in tuition would lead to a 2% decrease in enrollment. If the law school wants to increase its total revenue, it should __ tuition because the demand for Law School enrollment is .A) Increase; elasticB) Decrease; elasticC) Increase; inelasticD) Decrease; inelasticE) None of the above

Economics For Today

10th Edition

ISBN:9781337613040

Author:Tucker

Publisher:Tucker

Chapter5: Price Elasticity Of Demand And Supply

Section: Chapter Questions

Problem 14SQ

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