The Price Elasticity of Demand for Higher Education Is About

question 146

Multiple Choice

The price elasticity of demand for higher education is about 1.4. A 5% increase in tuition would lead to

• A) a decrease in enrollment by 7%.
• B) a decrease in enrollment by 6.4%.
• C) a decrease in enrollment by 3.6%.
• D) a decrease in enrollment by 2.8%.

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Definitions:

Statement of Cash Flows

A financial statement that reports a company's cash inflows and outflows over a period, categorized into operating, investing, and financing activities.

Total Assets

This represents the sum of all owned resources that have economic value and can contribute to future benefits for a company, including both current and non-current assets.

Free Cash Flow

The amount of operating cash flow remaining after replacing current productive capacity.

Cash Flow From Operations

A measure of the cash a company generates from its regular business activities, excluding costs associated with financing or investments.