When a university increased tuition by 10 percent, the number of students enrolled in fell by 15 percent. This university is faced with a(n) ____ demand.
A) elastic
B) inelastic
C) unit elastic
D) infinitely elastic
E) perfectly inelastic

Question

Quizplus · Accepted Answer

The decrease in enrollment of 15% is greater than the increase in tuition of 10%, indicating that the demand is elastic. In other words, the change in price has a significant impact on the quantity demanded.

When a University Increased Tuition by 10 Percent, the Number