The Price Elasticity of Demand for Higher Education Is About

question 146

Multiple Choice

The price elasticity of demand for higher education is about 1.4. A 5% increase in tuition would lead to

• A) a decrease in enrollment by 7%.
• B) a decrease in enrollment by 6.4%.
• C) a decrease in enrollment by 3.6%.
• D) a decrease in enrollment by 2.8%.

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Definitions:

Corporate Business Structure

Corporate business structure refers to the legal organization of a company, often characterized by the issuance of shares, a board of directors, and liability protection for its shareholders.

Productive Contribution

The input or service provided by a factor of production towards the making of goods and services.

Corporate Form

A legal structure for businesses recognized as separate entities from their owners, providing limited liability protection and enabling easier access to capital.

Cost Efficient

Achieving a specific goal or output with minimum expense or least waste.