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2 Inadiscussionof tuitionrates, auniversityofficial argues that thedemandforadmission is completelyprice inelastic. As evidence, shenotes thatwhile theuniversityhasdoubled its tuition(inrealterms)overthepast15years,neitherthenumbernorqualityofstudentsapplying hasdecreased.Wouldyouacceptthisargument?Explainbriefly. (Hint1: Theofficialmakes anassertionaboutthedemandforadmission,butdoessheactuallyobserveademandcurve? Whatelsecouldbegoingon?Hint2:Thinkabouttheexistenceofpotentialsubstitutes.)
2 Inadiscussionof tuitionrates, auniversityofficial argues that thedemandforadmission is completelyprice inelastic. As evidence, shenotes thatwhile theuniversityhasdoubled its tuition(inrealterms)overthepast15years,neitherthenumbernorqualityofstudentsapplying hasdecreased.Wouldyouacceptthisargument?Explainbriefly. (Hint1: Theofficialmakes anassertionaboutthedemandforadmission,butdoessheactuallyobserveademandcurve? Whatelsecouldbegoingon?Hint2:Thinkabouttheexistenceofpotentialsubstitutes.)
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International Economics
Authors: Dominick Salvatore
11th edition
978-1118177938, 1118177932, 1119915732, 978-1118476017, 1118476018, 978-1119915737
