ECO101H1 Lecture 24: Lecture 24-Labour Markets

31. Get Smart University is contemplating increasing tuition to increase revenue. What must the school believe? a. The law of demand does not apply. b. The demand for university education is elastic. c. The demand for university education is inelastic. d. The supply of university education is elastic.

40) Suppose that Simon Fraser University decides to raise tuition fees to increase the total revenue it receives from students. This policy works only if the demand for a Simon Fraser University education is A) greater than the demand for a University of Western Ontario education. B) perfectly elastic. C) inelastic. D) unit elastic. E) elastic.

2) Suppose Andrea has a job that pays her $25 000 per year after taxes). She is considering quitting her job and going to university full time for four years. Tuition fees and books will cost $12 000 per year. Living expenses in either situation will cost $10 000 per year. What is the opportunity cost of Andrea's four-year university degree? A) $88 000 B) $100 000 C) $120 000 D) $148 000 E) $188 000