The University President Believes That Increasing Student Tuition by 5

question 233

Essay

The university president believes that increasing student tuition by 5% will increase revenues.If the president is correct that revenues will increase, then the tuition increase will:
A.reduce the number of students enrolling by less than 5%.
B.reduce the number of students enrolling by more than 5%.
C.reduce the number of students enrolling by exactly 5%.
D.increase the number of students enrolling by 5%.

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Definitions:

Tax Rate

The percentage at which an individual or corporation is taxed by the government.

Sales Tax

A consumption tax imposed by the government on the sale of goods and services.

Valuation Rate

The estimated or assessed value of an asset or liability for accounting and tax purposes.

Market Value

The current price at which an asset or service can be bought or sold in a market.