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Author Question: A recent study at a liberal arts college concluded that demand elasticity is 0.91 for college ... (Read 90 times)

swpotter12

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on: Jun 30, 2018
A recent study at a liberal arts college concluded that demand elasticity is 0.91 for college courses. The administration is considering a tuition increase to help balance the budget. An economist might advise the school to:
 a. decrease tuition in order to increase revenue by boosting enrollment.
 b. increase tuition in order to increase revenue.
 c. leave tuition unchanged as a change in tuition is unlikely to enhance the school's budget by increasing revenue.
  d. decrease tuition because demand for courses is elastic.

Question 2

If a bank gets a 100,000 new deposit, chooses to lend out 75,000, and increases its excess reserves by 5,000 at the same time, then the reserve requirement is:
 a. 30.
 b. 25.
 c. 20.
 d. unable to be determined from the information given.


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katara

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Reply #1 on: Jun 30, 2018
Answer to Question 1

b

Answer to Question 2

c


swpotter12

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Reply 2 on: Jun 30, 2018
Great answer, keep it coming :)

kusterl

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Reply 3 on: Yesterday
Thanks for the timely response, appreciate it

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