A university enrolled 200 graduate students in the Fall of 2011. However, the enrollment rate was only slightly affected following a 12 percent hike in tuition the following Fall. This illustrates a(n) ________ demand.

Question

Quizplus · Accepted Answer

The fact that the enrollment rate was only "slightly affected" by a 12 percent hike in tuition suggests that the demand for graduate education at this university is relatively inelastic. If demand were highly elastic, we would expect a larger drop in enrollment in response to the tuition increase.

A University Enrolled 200 Graduate Students in the Fall of 2011