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

Question

Quizplus · Accepted Answer

Nonresidents are charged higher tuition fees but still choose to attend, indicating they have a less price-elastic demand, meaning their demand is less sensitive to price changes compared to residents.

A Community College Charges Lower Tuition Fees to Town Residents