If Stimpson University increases tuition in order to increase its revenue, it will: a. be successful if demand is elastic. c. be successful if demand is inelastic. d. be successful if supply is elastic.

To analyze the impact of an increase in tuition on revenue, we need to understand the concepts of elastic and inelastic demand. 1. **Elastic Demand**: When demand is elastic, a small change in price (tuition) leads to a larger change in the quantity demanded. In this case, if Stimpson University increases tuition, the total revenue will decrease because the percentage drop in quantity demanded will be greater than the percentage increase in price. 2. **Inelastic Demand**: When demand is inelastic, a change in price leads to a smaller change in the quantity demanded. Therefore, if Stimpson University increases tuition, the total revenue will increase because the percentage drop in quantity demanded will be less than the percentage increase in price. 3. **Supply Elasticity**: The elasticity of supply refers to how responsive the quantity supplied is to a change in price. However, in this context, the focus is primarily on demand elasticity to determine the effect on revenue. Now, let's evaluate the options: - **a. be successful if demand is elastic**: This is incorrect. If demand is elastic, increasing tuition will decrease revenue. - **c. be successful if demand is inelastic**: This is correct. If demand is inelastic, increasing tuition will increase revenue. - **d. be successful if supply is elastic**: This is not directly relevant to the question of revenue from tuition increases. Thus, the correct answer is: **c. be successful if demand is inelastic.**