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Opera Estate Girls' School is considering increasing its tuition to raise revenue.

1. If the school believes that raising tuition will increase revenue it is assuming that the demand for attending the school is elastic.
2. perfectly elastic.
3. inelastic.
4. unit elastic.

Answer :

Answer:

3. inelastic. 

Explanation:

Demand is inelastic if a change in price leads to little or no change in the quantity demanded.

If tuition is increased in order to increase revenue, demand for the school has to be inelastic.

If demand is elastic , if tuition is increased, the number of students enrolled in the school would drop and revenue would fall.

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