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​State University Recently Announced a Plan to Increase Tuition

Question 137

Multiple Choice

​State University recently announced a plan to increase tuition.As president of the student government,you feel obligated to protest.Luckily,before emailing a statement to the board of trustees,you asked your marketing professor to proofread it.From the sentences below,choose the mistake(s) she caught.


A) ​A tuition increase could harm the university by resulting in market suppression.
B) ​A tuition increase could harm the university by resulting in cost recovery.
C) ​If the university would reduce tuition instead of increasing it, this would create a market incentive and boost enrollment.
D) ​We believe the increase is a profit maximization strategy, which is never used by not-for-profit organizations.
E) ​Price changes are never used by not-for-profit organizations to influence their markets.

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