Answer to Question #171481 in Microeconomics for Andrew

Question

 Imagine that tuition for your schooling has increased by 20%. How do you think this will affect demand and consumer behavior? Why? How would you describe the elasticity of your tuition? Explain.

Answer 1

I think if the tuition for the schooling has increased by 20%, the demand will decreased because some consumers (students) won't be able to pay for tuition. Then, the demand for the tuition will be elastic (because the price of the tuition has a big effect on consumer's demand).