CFA Practice Question

There are 539 practice questions for this study session.

CFA Practice Question

Elizabeth Savoca estimated that for every 1% increase in tuition costs at college, 2.4% fewer students applied to that college. This indicates that the elasticity of applying to college is ______.
A. inelastic
B. elastic
C. unitary elastic
Explanation: Elasticity = 2.4/1 = 2.4. Elastic points have elasticities greater than one.

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