Opera Estate Girls' School is considering increasing its tuition to raise revenue.If the school believes that raising tuition will increase revenue it is assuming that the demand for attending the school is

Question

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If raising tuition is expected to increase revenue, it means that the demand for attending the school is relatively inelastic, meaning that parents and students are willing to pay a higher price to attend the school despite the increase in cost. If the demand were elastic, an increase in tuition would lead to a decrease in the number of students attending, resulting in a decrease in revenue.

Opera Estate Girls' School Is Considering Increasing Its Tuition to Raise