A Study of About 1800 U

question 53

Multiple Choice

A study of about 1800 U.S. colleges and universities resulted in the demand equation where q is the enrollment at a college or university and p is the average annual tuition (plus fees) it charges. The study also found that the average tuition charged by universities and colleges was $2,127. What is the corresponding elasticity of demand?

• A)1.55
• B)0.30
• C)1.16
• D)-0.78
• E)0.78

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