Consider the Statement: "When the British Government Tripled University Fees

question 3

Multiple Choice

Consider the statement: "When the British government tripled university fees for foreign students in Great Britain,about one-half of them left to study in other countries." This move will ___________ university revenues from foreign students in Great Britain.

• A)decrease
• B)not change
• C)increase
• D)cannot determine without further information

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Definitions:

Competitive Market

A market situation where numerous sellers and buyers exist, and where each has a negligible impact on the market price.

Equilibrium Price

The price at which the quantity of goods supplied is equal to the quantity of goods demanded in a market.

Equilibrium Quantity

At the market equilibrium price, the amount of goods or services that are supplied matches the amount that is demanded.

Equilibrium Price

The market price at which the quantity demanded of a good equals the quantity supplied, leading to a state of balance in the market.