Answer to Question #156278 in Microeconomics for mad

Question

Imagine that tuition for your education has increased by 20%. How do you think it will affect consumer demand and behavior? Why?

Answer 1

Increasing school tuition would not affect demand for schooling significantly although it would have the consumers seek cheaper substitutes (other schools). Demand would decrease but by a percent slightly lower than 20% and this would be because people would seek cheaper schools but still cannot do away with tuition.