Question

Suppose that college tuition is higher this year than last year and that more students are enrolled in college this year than last year. Based on this information, we can best conclude that::________.​a. despite the increase in price, quantity demanded rose due to some other factors changing.
b. this situation has nothing to do with the law of demand.
c. ​the law of demand is invalid.
d. ​the demand for a college education is positively sloped.

Answer 1

Answer:

Despite the increase in price, quantity demanded rose due to some other factors changing.

Explanation:

Considering the rise in tuition, a consequential effect could have been a drop in the number of students being enrolled at the institution, since the change may not be affordable for all or the criteria for the increase may not be pleasing to majority of the intending students.

In this case however, the change had no negative effect on the number of students being enrolled and there was a consequential increase in the number of students being enrolled this year. This is indicative of a substantial change which must have occurred together with the increase in tuition such as an increase in standard due to provision of better teaching and learning facilities, student hostels which will make the students more comfortable and ensure they get their money's worth at the institution.

These factors, make being enrolled at the school valuable to the students despite the increase in fees.

Answer 2

Answer:

.​a. despite the increase in price, quantity demanded rose due to some other factors changing.

Explanation:

The law of demand examines the relationship between price and quantity demanded. It states that the higher the price, the lower the quantity demanded and the lower the price , the higher the quantity demanded.

The number of students enrolled in college increased despite the increase in price. This situation doesn't follow the law of demand so it has to be assumed that other factors apart from price, increased the number of students in school.

The demand curve is negatively sloped.

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