Chapter 12.6, Problem 34E

To determine

The correct option for the below statement:

A time series study of the demand for higher education, using tuition charges as a price variable yields $\frac{dq}{dp}\cdot \frac{p}{q}=-0.4$ where $p$ is tuition and $q$ is the quantity of higher education

(A). As tuition rises, students want to buy greater quantity of education.

(B). As a determinant of the demand for higher education, income is more important than price.

(C). If colleges lowered tuition slightly their total tuition receipts would increase.

(D). If colleges raised tuition slightly their total tuition receipts would increase.

(E). Colleges cannot increase enrollments by offering larger scholarships.