Suppose that college tuition is higher this year than last year and that more students are enrolled in college this year than last year. Based on this information, we can best conclude that:
A. the law of demand is invalid.
B. despite the increase in price, quantity demanded rose due to some other factor changing.
C. this situation has nothing to do with the law of demand.
D. the demand for a college education is positively sloped.
Answer:B
Suppose that college tuition is higher this year than last year and that more students are enrolled in college this year than last year. Based on this information, we can best conclude that:
A. the law of demand is invalid. B. despite the increase in price, quantity demanded rose due to some other factor changing. C. this situation has nothing to do with the law of demand. D. the demand for a college education is positively sloped.
Explanation: Some factor such as an increase in income could have caused the demand to increase, resulting in a higher equilibrium price and quantity.