Facing stiff competition, Hendrix College, a small liberal arts institution in Conway, Ark., decided two years ago to bolster its academic offerings, promising students at least three hands-on experiences outside the classroom, including research, internships and service projects.Although it raised tuition and fees by 29 percent, enrollment in the freshman class rose by 37 percent.
Source: Jonathan D.Glater and Alan Finder, "In New Twist on Tuition Game, Popularity Rises With the Price," New York Times, December 12, 2006
Based on the information above, the demand for Hendrix College education is
A)unit elastic.
B)perfectly elastic.
C)relatively elastic.
D)More information is needed to answer the question.

Question

Quizplus · Accepted Answer

The fact that enrollment in the freshman class rose by 37 percent despite a 29 percent increase in tuition and fees suggests that the demand for Hendrix College education is relatively elastic. This means that students are sensitive to changes in price and are willing to consider other options if the cost becomes too high.

Facing Stiff Competition, Hendrix College, a Small Liberal Arts Institution