Hamburger University is losing $4 million dollars per year. The trustees of the university want to increase fees to cover the deficit. The president of the student body wants to decrease fees to cover the deficit. On the basis of this information, which of the following is true? A) The trustees think demand is price inelastic, and the student body president thinks it is price elastic. B) There is no disagreement with respect to elasticity. c )Both the trustee and president of the student body think the price elasticity of demand is one. D) The trustees think demand is price elastic, and the president of the student body thinks it is price inelastic
Hamburger University is losing $4 million dollars per year. The trustees of the university want to increase fees to cover the deficit. The president of the student body wants to decrease fees to cover the deficit. On the basis of this information, which of the following is true? A) The trustees think demand is price inelastic, and the student body president thinks it is price elastic. B) There is no disagreement with respect to elasticity. c )Both the trustee and president of the student body think the price elasticity of demand is one. D) The trustees think demand is price elastic, and the president of the student body thinks it is price inelastic
Micro Economics For Today
10th Edition
ISBN:9781337613064
Author:Tucker, Irvin B.
Publisher:Tucker, Irvin B.
Chapter5: Price Elasticity Of Demand And Supply
Section: Chapter Questions
Problem 25SQ
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Question
Hamburger University is losing $4 million dollars per year. The trustees of the
university want to increase fees to cover the deficit. The president of the student
body wants to decrease fees to cover the deficit. On the basis of this information,
which of the following is true?
A) The trustees think demand is price inelastic, and the student body president
thinks it is price elastic.
B) There is no disagreement with respect to elasticity.
c )Both the trustee and president of the student body think the price elasticity
of demand is one.
D) The trustees think demand is price elastic, and the president of the student
body thinks it is price inelastic.
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