Gigantic State University raises tuition for the purpose of increasing its revenue so that more faculty can be hired.GSU is assuming that the demand for education at GSU is
A)decreasing.
B)relatively elastic.
C)perfectly elastic.
D)relatively inelastic.Difficulty: 02 Medium

Question

Quizplus · Accepted Answer

GSU assumes that the demand for education is relatively inelastic, meaning that students will continue to enroll despite the increase in tuition, allowing the university to increase revenue.

Gigantic State University Raises Tuition for the Purpose of Increasing