Marge tutors English students. If she raises rates, her revenues increase. Brad tutors biology students. If he lowers rates, his revenues increase. Which of the following is TRUE?
A) Marge's demand is elastic, and Brad's demand is inelastic.
B) Marge's demand is inelastic, and Brad's demand is elastic.
C) Marge's demand is elastic, and Brad's demand is elastic.
D) Marge's demand is inelastic, and Brad's demand is inelastic.

Question

Quizplus · Accepted Answer

Marge's demand for English tutoring is likely to be inelastic, as English tutoring is generally viewed as a necessity for students who need to improve their language skills. Brad's demand for biology tutoring is likely to be elastic, as there may be alternative tutors or study materials available at lower prices. Therefore, when Brad lowers his rates, more students are likely to choose him as their tutor, leading to an increase in revenue.

Marge Tutors English Students