ECONOMICS (CBSE/UGC NET)

Detailed explanation-1: -For example, if one goes up the other will increase as well. In this case, an increase in price leads to an increase in total revenue, which is the definition of an inelastic demand curve.

Detailed explanation-2: -A Competitive Edge Increased tuition costs help schools maintain their facilities, make repairs, build sports arenas, conduct research and upgrade classrooms and academic laboratories. According to Forbes, state-of-the-art facilities attract more students and give schools a competitive advantage.

Detailed explanation-3: -A price increase will therefore increase total revenue while a price decrease will decrease total revenue. Finally, when the percentage change in quantity demanded is equal to the percentage change in price, demand is said to be unit elastic.

Detailed explanation-4: -The correct answer is option D: 2.1 The value of elasticity greater than 1 implies that demand is ‘elastic’. This means that there will be a greater change in the quantity demanded following a decrease in price. The extent of an increase in quantity demanded would not be proportional to the change in price.