A well-known women's college whose tuition lagged below similar schools found recruiting difficult and enrollment falling.A substantial tuition increase was implemented, and dormitories were soon full again.This can be explained by

Question

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This situation can be best explained by the snob effect, which occurs when people perceive higher prices as indicating higher quality. By increasing the tuition, the college may have created the impression of being more prestigious and exclusive, which attracted more students. The fact that enrollment increased despite the substantial increase in tuition suggests that demand was relatively elastic, meaning that students were willing to pay more for the perceived benefits of attending the school.

A Well-Known Women's College Whose Tuition Lagged Below Similar Schools