17. A) If a private school Chancellor decides to raise the tuition for the next school year, and total revenue of the school falls, what might be the case? a The Chancellor's lead economist assumed an . elastic demand curve for enrollment, when demand was truly inelastic. b. The Chancellor could have deliberately chosen exclusivity over revenues. c. The marginal cost of adding new seats to the school must be quite low. d. The marginal cost of adding a new student to the school must be quite low. e. All of the above. B) On a blank sheet of paper, draw a supply and demand diagram in the market for teachers. Assume that the supply curve for teacher labor is perfectly elastic, hence if all schools in a district shnulatenusly increase the demand for teachers, the wages will not change. If the production function is f(k, I) and the supply curve for capital is not perfectly elastic, we can assume that the marginal cost of increasing enrollment a. constant b. zero. 0. is downward sloping. d. falling rapidly. e. none of the above