A university needs to increase total revenue. The vice chancellor suggests that by raising fees for overseas students by 15%, total revenue will increase. However, after the fees increase, total revenue actually falls. What can you infer about the price elasticity of demand? Why is this likely to be true?

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The Answer of A university needs to increase total revenue. The vice chancellor suggests that by raising fees for overseas students by 15%, total revenue will increase. However, after the fees increase, total revenue actually falls. What can you infer about the price elasticity of demand? Why is this likely to be true?

A University Needs to Increase Total Revenue