A University Conducts a Survey of Students, Which Shows That

question 387

Multiple Choice

A university conducts a survey of students, which shows that a 10 percent tuition hike would lead to a 7 percent decrease in the enrollment. If the university wants to increase its total revenue, it should ________ tuition because the demand for education at this university is ________.

• A) raise; elastic
• B) not raise; elastic
• C) raise; inelastic
• D) not raise; inelastic

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Definitions:

Buy or Sell

The decision-making process in trading or investing where "buy" refers to acquiring assets and "sell" signifies disposing of them.

Deposit Insurance

A government guarantee to depositors in banks and other financial institutions, ensuring the safety of their deposits up to a certain limit, in case the institution fails.

FDIC

Federal Deposit Insurance Corporation; a U.S. government agency that insures deposits at banks and thrift institutions, providing financial stability and protecting depositors.

Call Bonds

Bonds that can be redeemed by the issuer before their maturity date, typically at a premium, giving issuers flexibility in refinancing opportunities.