If Carbaugh University raises its tuition, and the student demand for attending Carbaugh University is elastic, this means
A) there may be a relatively big decline in enrollment as students drop out or switch to other colleges
B) students will work more in the summer so they can stay at Carbaugh
C) Carbaugh will be able to collect ore tuition overall even if enrollment drops somewhat
D) students will stay at Carbaugh in the short run to complete their undergraduate degrees but not their graduate degrees

Question

Quizplus · Accepted Answer

When demand is elastic, a price increase (in this case, tuition) leads to a proportionally larger decrease in quantity demanded (enrollment), as consumers (students) are more responsive to price changes and may find alternatives or drop out.

If Carbaugh University Raises Its Tuition, and the Student Demand