Concept explainers
College Tuition An old study of about 1,800 U.S. colleges and universities resulted in the demand equation
a. The study also found that the average tuition charged by universities and colleges was $2,900. What would the effect on the price elasticity of demand have been if the price had been lowered to $2,200? What does the answer suggest about the tuition price corresponding to maximum annual revenue?
b. On the basis of the study, what would you have advised a college to charge its students to maximize total annual revenue, and what would the resulting enrollment and revenue have been?
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Chapter 5 Solutions
Applied Calculus
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