A Major State University in the South Recently Raised Tuition

question 156

Essay

A major state university in the South recently raised tuition by 12%.An economics professor at this university asked his students, "How many of you will transfer to another university because of the increase in tuition?" One student out of about 300 said that he or she would transfer.Based on this information, the price elasticity of demand for education at this university is:
A.1.
B.highly elastic.
C.highly inelastic.
D.0.

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Definitions:

Order Getter

Sells in a conventional sense and identifies prospective customers, provides customers with information, persuades customers to buy, closes sales, and follows up on customers’ use of a product or service.

Conventional Sense

In the most widely accepted or traditional meaning of a word or concept.

Prospective Customers

Individuals or organizations potentially interested in purchasing a company's products or services but have not yet done so.

Sales Engineer

A professional who combines technical knowledge with sales skills to provide advice and support on a range of products or services.