Your University Is Running a Special Offer on Tuition

question 116

Multiple Choice

Your university is running a special offer on tuition.This year's tuition cost is $18,000.Next year's tuition cost is scheduled to be $19,080.The university offers to discount next year's tuition at a rate of 6% if you agree to pay both years' tuition in full today.How much is the total tuition bill today if you take the offer?

• A)$18,000
• B)$34,981
• C)$37,080
• D)$36,000

---

Definitions:

Good

A tangible product that satisfies human wants or needs.

Service

An (intangible) act or use for which a consumer, firm, or government is willing to pay.

Cross Elasticity

A measure of how the quantity demanded of one good responds to a change in the price of another good, indicating the relationship between goods as substitutes or complements.

DVD Players

Electronic devices that play discs using the Digital Video Disc (DVD) format, majorly used for watching movies and other video content.