Consider the market for tutoring at a university. If the price of tutoring increases, which of...

Consider the market for tutoring at a university. If the price of tutoring increases, which of the following occur?
A. The demand for tutoring increases B. The demand for tutoring decreases C. The quantity demanded for tutoring increases D. The quantity demanded for tutoring decreases

4. Consider the market for tutoring at a university. If enrollment at the university increases, which of the following occur?
A. The demand for tutoring increases B. The demand for tutoring decreases C. The quantity demanded for tutoring increases D. The quantity demanded for tutoring decreases

Solutions

Expert Solution

3. To answer this question first of all we have to distinguish between the demand and the quantity demand. The demand refers to the overall quantity purchased of a commodity. In other words demand refers to different possible quantities to be purchased at different possible prices of a commodity. But the quantity demanded is the specific quantity of a commodity purchased at a specific price. The quantity demanded is related to the price, but the demand relates to the factors other than price.

In the first case the price of tutoring increase. Here it refers to the change in demand due to price change. The quantity demanded related inversely with price. At higher price lower quantity will be purchased and at lower price higher quantity will be purchased. The increase in price of tutoring decrease the quantity demanded but not the overall demand.

Answer: D. The quantity demanded of the tutoring decrease.

4. The enrollment at the university increase. The increase in enrollment is due to the factors other than price of the commodity. Hence this is the total change in the demand for the commodity. Hence we could say the demand for tutoring increase.

Answer: A. The demand for tutoring increase.

Rahul Sunny answered 1 year ago

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