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Math Help - own price elasticity question....

  1. #1
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    own price elasticity question....

    ok so here we go we have an elasticity of -0.93. in the fall 2009 semester tuition increased by 15%, it had a current level of students to be 3,500. based on the price change how much should we expect enrollment to change from its current level of students? will total revenue go up or go down? ok well E = chg of Q/ chg of P so i plugged into the equation and got the answer...not a problem and since the E is inelastic i said the total revenue would increase...what got me stuck was the last part, when full ride scholarships were offered for all students who registered.... wouldn't that be a 100% increase..i dont know im guessing..im not sure what to do here...any thought?suggestions? thanks in advance..
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  2. #2
    Senior Member
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    ok my next thought on this problem is, the school is offering full ride scholarships to all who register, well wouldn't this make the chg of P = 0.???? well if E = chg of Q/ chg of P ok well maybe not, that doesn't make any sense either, because the chg of Q would be 0??? ok well never mind this last entry...
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