The university you attend needs to increase total revenue. The vice chancellor suggests that raising tuition fees by 5% will increase total revenue. However, after the tuition fee increase, total revenue actually fell. What can you infer about the price elasticity of demand for an education at your university? Why is this likely to be true? What did your university vice chancellor assume to be true about the price elasticity of demand for an education at your university?

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The Answer of The university you attend needs to increase total revenue. The vice chancellor suggests that raising tuition fees by 5% will increase total revenue. However, after the tuition fee increase, total revenue actually fell. What can you infer about the price elasticity of demand for an education at your university? Why is this likely to be true? What did your university vice chancellor assume to be true about the price elasticity of demand for an education at your university?

The University You Attend Needs to Increase Total Revenue