Assume Tuition at Penn State Cost $6,142 (Per Semester)in 2007

question 98

Multiple Choice

Assume tuition at Penn State cost $6,142 (per semester) in 2007 and $7,562 in 2012.If the price index was 207.34 in 2007 and 226 in 2012,then we could say tuition

• A) has increased more slowly than inflation.
• B) has increased more rapidly than inflation.
• C) has increased at about the same rate as inflation.
• D) is an inferior good.
• E) suffers from menu costs due to inflation.

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Definitions:

Centre of Gravity

A geographical location that minimizes transportation costs for a company, considering the locations of suppliers, manufacturing facilities, and markets.

Fixed Cost

Costs that remain constant regardless of the amount of goods produced or sold, like lease payments, employee wages, and insurance fees.

Expansion Options

Strategic choices available to a business to increase its size, offerings, or operational capacity.