Question

Get Smart University is contemplating an increase in tuition to enhance revenue. If GSU feels that raising tuition would enhance revenue, it is

Answer 1

If GSU feels that raising tuition would enhance revenue, it is assuming that the demand for university education is inelastic.

• The quantity of a good that consumers are willing and able to buy at different prices during a specific time period is known as demand in economics. The demand curve is another name for the relationship between price and quantity demand.
• A change in demand whose percentage is less than a change in price. Demand is said to be inelastic, for instance, if the price of a good increases by 25% but drops in demand by just 2%.
• When there is a small change in the quantity demanded when the price changes, a good or service has inelastic demand. The term "price inelasticity of demand" is another name for this. An example of inelastic demand is gasoline, where individuals generally buy the same amount even when prices rise.

Thus this is the answer.

To learn more about Demand, refer: brainly.com/question/1245771

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