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5.20: Assignment- Elasticity and Tuition

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  • Part 1: Imagine that tuition for your schooling has increased by 20%. How do you think this will affect demand and consumer behavior? Why? How would you describe the elasticity of your tuition? Explain.

    Part 2: Imagine that there are currently 10,000 students enrolled at your institution. The school decides to increase tuition, and enrollment falls to 9,000. Tuition started at $4,000 per semester but has since gone up to $4,800. What is the elasticity of demand?

    Part 3: How will this impact total revenue for your institution? What inferences can you make from this information?

    Criteria Not Evident Developing Proficient Distinguished Weight
    Describe the elasticity of tuition. 5
    Explain how an increase in tuition will impact demand and consumer behavior. 5
    Solve for the elasticity of demand 5
    Explain the impact of the tuition increase on total revenue 5
    Total: __/20


    Contributors and Attributions

    CC licensed content, Original
    • Assignment: Elasticity and Tuition. Provided by: Lumen Learning. License: CC BY: Attribution