Hamburger University Is Losing $4 Million Dollars Per Year

question 48

Multiple Choice

Hamburger University is losing $4 million dollars per year. The trustees of the university want to increase fees to cover the deficit. The president of the student body wants to decrease fees to cover the deficit. On the basis of this information, which of the following is true?

• A)The trustees think demand is price elastic, and the president of the student body thinks it is price inelastic.
• B)Both the trustee and president of the student body think the price elasticity of demand is one.
• C)The trustees think demand is price inelastic, and the student body president thinks it is price elastic.
• D)There is no disagreement with respect to elasticity.

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Definitions:

Neutral Stimulus

A stimulus that initially produces no specific response other than focusing attention, until it is associated with an unconditioned stimulus in classical conditioning.

Unconditioned Stimulus

A stimulus that naturally and automatically triggers a response without the need for prior learning.

Alfred M Landon

An American politician, who was the Republican candidate for President in 1936 but was defeated by Franklin D. Roosevelt.

Republican Governor

A governor who is a member of the Republican Party, one of the two major political parties in the United States, traditionally emphasizing limited government and free-market principles.