(Last Word) Based on the concept of price elasticity of demand, which of the following cases is most likely to occur?
A) golf courses charging higher prices for golf during the week than on weekends
B) movie theaters charging higher prices for senior citizens
C) colleges charging lower tuition for low-income students
D) airlines charging lower fares for business travelers

Question

Quizplus · Accepted Answer

Lower-income students are likely to have a higher price elasticity of demand for college tuition. This means that if the price of tuition is lowered, it is more likely that they will enroll in college. Therefore, colleges charging lower tuition for low-income students is the most likely scenario to occur based on the concept of price elasticity of demand. The other options may also be valid examples, but they are not necessarily the most likely to occur.

(Last Word) Based on the Concept of Price Elasticity of Demand