A Local Community College Charges Lower Tuition Fees to Local

question 215

Essay

A local community college charges lower tuition fees to local town residents than to nonresidents.This pricing strategy increases the profits of the community college.Using this information, we can conclude that nonresidents must have a for attending the
community college than residents.
A.less price-elastic demand
B.greater demand
C.lower demand
D.more price-elastic demand

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Definitions:

Implicit Rate

An interest rate that is indirectly indicated but not explicitly defined, often used in lease agreements to represent the lessor’s return.

Fair Value

The financial return from unloading an asset or the expense of reallocating a liability in a formalized negotiation among market counterparts at the point of evaluation.

Economic Life

Refers to the expected period of time during which an asset is useful to the average owner.

Non-Cancelable

A term used in contracts and agreements indicating that the contract cannot be canceled or terminated by the parties involved without consequences.