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Opera Estate Girls' School is considering increasing its tuition to raise revenue. If the school believes that raising tuition will increase revenue it is assuming that the demand for attending the school is ____ (A) inelastic.(B) unit elastic.(C) perfectly elastic.(D) elastic.

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Cetacea

Answer: (A) inelastic

Explanation: In inelastic demand it states that by increasing the cost price it will create a proportionality in the total revenue ,that is revenue will also increase.In this case the demand of the buyer does not change, only the cost changes and the consumer will keep on buying the goods even after change in price.

Opera Estate Girls' School is also using this technique to increase the revenue,by increasing the tuition.Thus the correct option is option (A).

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