Answer:
B. increase tuition in order to increase revenue
Explanation:
Price elasticity of demand is a concept that seeks to measure the sensitivity of demand to the price of a good or service. Thus, if demand is elastic, it means that even small variations in price have a strong impact on demand. Conversely, if demand is inelastic, variations in the price of the good will not greatly affect demand, meaning consumers will continue to demand that particular good or service. The calculation of the price elasticity of demand consists in the division between the variation of the quantity demanded by the variation in the price practiced. If the result is greater than 1, demand is considered elastic (price sensitive). Conversely, if elasticity is less than 1, demand is considered inelastic (little price sensitive). If elasticity equals one, then the change in demand is exactly the same as the price change.
In the case of this faculty, the demand for courses is 0,91, so it's less than 1, therefore inelastic demand. This way, the college can maximize its revenue by increasing the tuition fee.
The correct answer is the free-rider problem
Explanation: Free-rider Problem, in economics, refers to the case of someone who benefits from resources, goods or services without paying the cost of the benefit.
As in this text, this free-rider problem is very normalized in our capitalist society, some people take advantage of others and this increases social inequalities
The correct answer is A) Zimbardo did not use a control group.
The major flaw in the research design of the Stanford prison experiment was that Zimbardo did not use a control group.
A control group was necessary to study a particular variable in prison. He had no alternative group to compare and measure the results of the experiment.
Other mistakes he had were that he was part of the experiment. He participated as the prison superintendent. He was an authoritative figure inside the experiment of the prison and influenced the behavior of his students. He should have a neutral position.
