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vitfil [10]
4 years ago
6

​If Education R Us University thought that it faced an inelastic demand for the regular academic year but an elastic demand for

summer school, and it wanted to increase its total tuition revenue, it would want to____ tuition in the regular academic year and ____ tuition for summer school.
Social Studies
1 answer:
Gemiola [76]4 years ago
5 0

Answer:

Increase; decrease.

Explanation:

This question is just to test for the knowledge of elasticity in economics. And elasticity in economics is about the changes in Behavior of buyers or consumers and manufacturers to changes in price or opportunity costs or income.

Let us go back to the question, the two Important words in the question are; inelastic demand andelastic demand. Inelastic demand is when there is no changes in the Behavior of individuals towards a particular product because of the price, that is at higher price, individuals buy at the normal rates they use to buy before and vice- versa. Elastic demand is the opposite of inelastic demand which shows the changes I

the relationship towards a particular product (s) because if price and income.

Now, back to the question; the institution wants to increase their revenue, the regular academic year is inelastic demand, which means that an increase in the institution fee for the regular academic year will not change peoples' Behavior to the increase in the price or fee and this is vice- versa to the summer school which faces elastic demand. An increase in the fee will make some people (if not all as the case may be) not to come for the summer school.

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