A university enrolled 200 graduate students in the Fall of 2015. However, the enrollment rate was only slightly affected following a 12-percent hike in tuition the following fall. This illustrates ________ demand.
A) derived
B) negative
C) highly elastic
D) composite
E) inelastic

Question

Quizplus · Accepted Answer

The enrollment rate being only slightly affected despite a 12-percent hike in tuition indicates that the demand for the university's graduate program is inelastic. This means that even if the price (tuition) increases, there is not a significant decrease in the demand (enrollment) for the program.

A University Enrolled 200 Graduate Students in the Fall of 2015