Let
Solution
Annual Elasticity Formula:
For headcount = (%change in undergrad headcount/%change in fall tuition and fees)*(Original
fall tuition fees of a particular year/original headcount of a particular year)
For credit hour = (%change in undergrad credit hour/%change in fall tuition and fees)*(Original
fall tuition fees of a particular year/original credit hour of a particular year)
Yes fees could be raised as we can see that mainly elasticities falls below 1 and hence
inelastic.YearUndergrad Fall Headcount% ChangeFal Tution and Fees% Change in Fall Tution
and FeesAnnual
Elasticity19803,42891.30%24000.30057894319813,73189.30%29020.80%0.39857759919823,7
7688.20%34017.20%0.53596650519834,04987.50%39014.70%019844,10187.40%39000.33210
268819854,06189.40%49025.60%0.48317840419863,72389.70%60022.40%019873,92390.00%
60001.35814427719883,99588.80%66010.00%1.36217441619893,59487.40%73010.60%12.50
61610619903,54086.20%7401.40%019913,75686.10%7400.00%019924,01786.10%7400.00%0.
52780616619933,89087.10%96530.40%019943,65686.30%9650.00%019953,63185.80%9650.0
0%019963,35485.00%9650.00%3.83312174219973,51682.60%1,0256.20%019983,67883.40%1
,0250.00%019993,55383.80%1,0250.00%020003,42283.30%1,0250.00%2.0402578320013,419
83.10%1,15012.20%9.39553475720023,54383.80%1,1843.00%1.28058908320033,65583.50%1
,44221.79%4.90673533420043,91088.80%1,5457.14%7.24424552420053,94090.20%1,6214.92
%12.9365929120063,59489.30%1,6672.84%020073,55689.80%1,6670.00%8.46417635320083,
90391.00%1,7515.04%6.12629683720094,22090.40%1,8676.62%3.81817789820104,05890.10
%2,06210.44%5.13230420114,13490.60%2,2478.97%0.
1. Let
Solution
Annual Elasticity Formula:
For headcount = (%change in undergrad headcount/%change in fall tuition and fees)*(Original
fall tuition fees of a particular year/original headcount of a particular year)
For credit hour = (%change in undergrad credit hour/%change in fall tuition and fees)*(Original
fall tuition fees of a particular year/original credit hour of a particular year)
Yes fees could be raised as we can see that mainly elasticities falls below 1 and hence
inelastic.YearUndergrad Fall Headcount% ChangeFal Tution and Fees% Change in Fall Tution
and FeesAnnual
Elasticity19803,42891.30%24000.30057894319813,73189.30%29020.80%0.39857759919823,7
7688.20%34017.20%0.53596650519834,04987.50%39014.70%019844,10187.40%39000.33210
268819854,06189.40%49025.60%0.48317840419863,72389.70%60022.40%019873,92390.00%
60001.35814427719883,99588.80%66010.00%1.36217441619893,59487.40%73010.60%12.50
61610619903,54086.20%7401.40%019913,75686.10%7400.00%019924,01786.10%7400.00%0.
52780616619933,89087.10%96530.40%019943,65686.30%9650.00%019953,63185.80%9650.0
0%019963,35485.00%9650.00%3.83312174219973,51682.60%1,0256.20%019983,67883.40%1
,0250.00%019993,55383.80%1,0250.00%020003,42283.30%1,0250.00%2.0402578320013,419
83.10%1,15012.20%9.39553475720023,54383.80%1,1843.00%1.28058908320033,65583.50%1
,44221.79%4.90673533420043,91088.80%1,5457.14%7.24424552420053,94090.20%1,6214.92
%12.9365929120063,59489.30%1,6672.84%020073,55689.80%1,6670.00%8.46417635320083,
90391.00%1,7515.04%6.12629683720094,22090.40%1,8676.62%3.81817789820104,05890.10
%2,06210.44%5.13230420114,13490.60%2,2478.97%0
