A University Administration's Decision to Raise Tuition in Order to Increase

question 26

Multiple Choice

A university administration's decision to raise tuition in order to increase revenue will be successful if _____

• A)the demand curve slopes downward.
• B)demand is elastic.
• C)demand is inelastic.
• D)supply is elastic.
• E)supply is inelastic.

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Definitions:

Two Points

In finance, two points refer to a one percent change in the face value of a financial instrument like a loan or mortgage, often related to fees or interest rates.

Variable Cost Per Unit

The cost that changes with the level of output or production, expressed on a per unit basis.

Total Fixed Costs

The sum of all costs that remain constant regardless of the level of production or sales volumes.

Volume Levels

Refers to the varying intensities or amounts of sound, production, or activity in a given context.