EBK PRINCIPLES OF MICROECONOMICS (SECON
2nd Edition
ISBN: 9780393616149
Author: Mateer
Publisher: W.W.NORTON+CO. (CC)
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Chapter 4, Problem 12SP
To determine
Determine the
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College tuition has been rising at a faster rate than average prices for decades. Assess how the characteristics of the market for higher education have affected tuition. Your essay should address all of the following:
Do you believe that the price elasticity of demand for college is elastic or inelastic? Discuss the factors that support your position.
Do you believe that the price elasticity of supply for college is elastic or inelastic? Discuss the factors that support your position.
What has happened to the demand for college over the last 20 years? Explain what resulted in this change. Does your previous answer regarding the price elasticity of supply help explain why tuition has risen so quickly? Explain your reasoning.
Per-student, real government funding of higher education is lower now than it was in 2000. How would this reduced funding affect the supply of higher education? Explain. Does your previous answer regarding the price elasticity of demand help explain why tuition…
Beginning with the Fall 2018 semester, three North Carolina universities (UNC Pembroke, Western Carolina University, and Elizabeth City State University) reduced their tuition. After the Fall semester had begun, each of these universities announced that they had experienced a large increase in enrollment.
Explain what these facts tell us about the price elasticity of demand for education at these universities.
Use your answer to part a. of this question to explain whether reducing tuition would lead to an increase, a decrease, or no change in the amount of revenue received by the universities.
HOW DO YOU RESPOND TO PRICE ELASTICITY?
People have unlimited needs and wants for their personal satisfaction and because of that the prices
of products easily get changed.
Everyone is affected with the new normal in the market. The prices of products have become very
expensive since the outbreak of the pandemic, not only in our locality, but in the whole world.
If your income or the income of your family is not enough to purchase the basic commodities
needed by your family, what goods would you buy, instead?
What economic or marketing strategies would you apply? How would you respond to the price
changes of these commodities?
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EBK PRINCIPLES OF MICROECONOMICS (SECON
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Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, economics and related others by exploring similar questions and additional content below.Similar questions
- Who would pay a tax imposed on the supplier when the price elasticity of supply is inelastic and the price elasticity of demand is elastic?arrow_forwardCalculate the Price Elasticity of Demand (PED) for diamond rings if there is. price increase from $10,000 to $12,000 and quantity demanded falls from 100,000 to 90,000. Does this answer support what we have learned about elasticity and what we might expect for diamond rings? If so, why? (You may wish to describe a diagram here if it helps clarify the answer)arrow_forwardWhat effect does the availability of many substitute have on the elasticity of demand for a goodarrow_forward
- Energy markets, such as the market for natural gas and electricity, have been known to be characterized by inelastic demand. However, recent research discussed in the August 25, 2022 issue of The Economist, indicates that while the responsiveness of quantity demanded in response to price changes indeed is “inelastic” (i.e., the absolute value of price elasticity of demand is still less than 1), the percentage change in quantity demanded in response to a change in price is much larger than earlier research indicated. Answer these narrative questions. No graphs are needed. What does “inelastic demand” formally mean? In addressing this part of the question, please make sure to explain the concept of the price elasticity of demand using a simple formula and by providing a short narrative. Policymakers are encouraging people to conserve energy in response to the growing energy crisis. Discuss the positives (pros) and negatives (cons) of providing subsidies to consumers in this situation…arrow_forwardif the price elasticity of demand for a product is 2.5, then a price cut from $2.00 to $1.80 will:arrow_forwardThe subway fare in your town has just been increased from 50 cents to $1.00 per ride. As a result, the transit authority notes a decline in ridership of 30 percent. What is the price elasticity of demand for subway rides?arrow_forward
- Assume that the Morgantown Pizza is the exclusive destination for pizzas for WVU students. In other words, assume that the Morgantown Pizza is the only pizza place for WVU students. At current market condition, the price elasticity of demand is estimated to be 0.9. To increase revenue, the Morgantown Pizza should increase the price and attract less customers. cut the price and attract more customers.arrow_forwardIf the price elasticity of demand for restaurant meals is less than 1, will total spending on them rise or fall if the wage of waiters falls?arrow_forwardIn the context of Pakistan’s society for each of the following products, indicate the correct type of price elasticity of demand or supply and also justify your answer: a) An expensive necklace to be sold at an auction. b) Demand for COVID-19 Vaccine. c) Production of gold mining. d) Demand for gold.arrow_forward
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