1. A college raises its annual tuition from $23,000 to $24,000, and its student enrollment falls from 4,877 to 4,705. Compute the price elasticity of demand. Is demand for the college elastic or inelastic?
ELASTICITY: HOMEWORK ASSIGNMENT
Instructions: Solve the problems, working with numbers and graphs,
and show your work while solving the problems.
1. A college raises its annual tuition from $23,000 to $24,000, and its student
enrollment falls from 4,877 to 4,705. Compute the
demand
2. As the price of good X rises from $10 to $12, the quantity demanded of
good Y rises from 100 units to 114 units. Are X and Y substitutes or
complements? What is the cross elasticity of demand?
3. The quantity demanded of good X rises from 130 to 145 units as income
rises from $2,000 to $2,500 a month. What is the income elasticity of
demand for good X?
4. The quantity supplied of a good rises from 120 to 140 as price rises from $4
to $5.50. What is price elasticity of supply of the good?
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