The State Legislature Has Cut Gigantic State University's Appropriations

Multiple Choice

The state legislature has cut Gigantic State University's appropriations. GSU's Board of Regents decides to increase tuition and fees to compensate for the loss of revenue. The board is assuming that the

A) demand for education at GSU is elastic.
B) demand for education at GSU is inelastic.
C) coefficient of price elasticity of demand for education at GSU is unity.
D) coefficient of price elasticity of demand for education at GSU is greater than unity.