Question

decision point: how will skyrocketing tuition affect moondogs?
youve just learned that tuition and fees for the next semester are expected to increase by 15%. how do you think this will impact demand for moondogs coffee?
select an option from the choices below and click submit.

• demand for moondogs coffee likely will decrease.
• demand for moondogs coffee likely will remain unchanged.
• demand for moondogs coffee likely will increase.

Explanation:

When tuition (a cost for students) increases by 15%, students' disposable income likely decreases. Moondogs Coffee is a good students may buy, and with less money, they'll demand less of it (based on the income effect in economics: as income - related resources shrink, demand for non - essential or discretionary goods often falls).

Answer:

A. Demand for Moondogs Coffee likely will decrease.