The price elasticity of demand for one enrollment is 2

Economics Jan 19, 2021

The price elasticity of demand for one enrollment is 2.5 at the current rate of $27 each. There are 100,000 enrollments. The company increases the cost from $27 to $30.

a. How many new students would like to enroll in the program?

b. How would it change the revenue of the program?

Expert Solution

please see the attached file.

Download Solution Attachment (PDF/Doc)

Archived Solution

Unlocked Solution

You have full access to this solution. To save a copy with all formatting and attachments, use the button below.

Already a member? Sign In

Important Note: This solution is from our archive and has been purchased by others. Submitting it as-is may trigger plagiarism detection. Use it for reference only.

For ready-to-submit work, please order a fresh solution below.

Or get 100% fresh solution

Get Custom Quote