Data from the Registrar's Office at Gigantic State University Indicate

question 134

Multiple Choice

Data from the registrar's office at Gigantic State University indicate that over the past 20 years tuition and enrollment have both increased. From this information we can conclude that

• A) higher education is an exception to the law of demand.
• B) the supply of education provided by GSU has also increased over the 20-year period.
• C) factors such as school-age population, incomes, and preferences for education have increased over the 20-year period.
• D) GSU's supply curve of education is downsloping.

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Definitions:

Price Decrease

A reduction in the monetary value that must be paid for a product or service.

Resource Demand Curve

A graphical representation showing the relationship between the price of a resource and the quantity of that resource that firms are willing to employ, holding all other factors constant.

Competitive Market

A market structure characterized by many buyers and sellers where no single entity has the power to significantly affect the prices of goods and services.

Product Demand Elasticity

A measure of how sensitive the quantity demanded of a product is to changes in its price.