Gigantic State University raises tuition for the purpose of increasing its revenue so that more faculty can be hired.GSU is assuming that the demand for education at GSU is:

A) decreasing.
B) relatively elastic.
C) perfectly elastic.
D) relatively inelastic.

If GSU is raising tuition with the goal of hiring more faculty, it suggests that they believe the demand for education at GSU is relatively inelastic. This means that students are willing to pay a higher price, and enroll at GSU, even with the tuition increase. If the demand were relatively elastic, raising tuition would have a more significant impact on enrollment and may not result in the desired increase in revenue.