When Universities Announce a Large Tuition Increase and Follow It

question 261

Multiple Choice

When universities announce a large tuition increase and follow it with an announcement that more financial aid will be available, they are assuming that students who pay full tuition

• A)have elastic demand and students who use financial aid have inelastic demand.
• B)have inelastic demand and students who use financial aid have elastic demand.
• C)view a college education as an inferior good and students who use financial aid view it as a normal good.
• D)view a college education as a normal good and students who use financial aid view it as an inferior good.

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Definitions:

Burgundian Territories

Regions in Europe controlled by the Dukes of Burgundy during the Middle Ages, encompassing parts of modern-day France, Belgium, and the Netherlands.

Charles the Bold

A Duke of Burgundy known for his ambitious political and territorial goals, and his conflicts with neighbouring territories.

Holy Roman Empire

A complex of territories in central Europe that developed during the Early Middle Ages and continued until its dissolution in 1806, it was not a cohesive state but a collection of semi-autonomous principalities under the nominal suzerainty of the Emperor.

Ghent Altarpiece

A complex Early Flemish polyptych panel painting by Jan van Eyck, housed in St. Bavo's Cathedral in Ghent, Belgium, noted for its intricate detail and symbolic imagery.