Answer to Question #233316 in Mechanical Engineering for Emmo

Question

Over the last two decades, tuition fees at Purdue University have increased by 50%. At the same time, the number of students enrolled has increased from 22,000 to over 35,000.

Does this example demonstrate that the Law of Demand is false? Explain why or why not. Use graphs.

Answer 1

No, this fact does not falsify the Law of Demand.

The Law of Demand tells us what happens to the quantity demanded if price is the only factor that undergoes change. In the given example many factors might have probably changed over twenty years like the school's reputation or the average family income. Hence, the demand for the services offered by the university, Purdue university, has shifted as shown in the graph.