When Pester University,with an Annual Enrollment of 3,600 Students,raised Its

question 36

Multiple Choice

When Pester University,with an annual enrollment of 3,600 students,raised its tuition from $18,000 to $19,500,its enrollment fell by 200 students.What is the school's arc elasticity of demand?

• A) 0.13
• B) 0.67
• C) 0.71
• D) 1.4
• E) 1.5

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Definitions:

Cash Receipts

The total amount of money received by a company during a given period, including all sources of income and revenue.

Cash Disbursements

The outflow of cash for expenses, purchases, or investments by a company during a given period.

Cost of Goods Sold

The direct costs attributable to the production of the goods sold by a company, including direct materials and labor.

Merchandise Inventories

The total value of a company's goods that are ready for sale but have not been sold yet.