Suppose a college decide to raise the tuition fee from Rs.3, 000 per month to Rs.4, 000 of MBA level students. The number of students getting admission is 500. The price elasticity of demand for the students is 0.2. Find out the number of students getting admission after increase in tuition fee. Find out the total revenue before and after the increase in tuition fee. Explain whether the increase in tuition fee is wise decision or not on the basis of total revenue.

/in /by

Suppose a college decide to raise the tuition fee from Rs.3, 000 per
month to Rs.4, 000 of MBA level students. The number of students
getting admission is 500. The price elasticity of demand for the
students is 0.2.

Find out the number of students getting admission after increase in
tuition fee.

Find out the total revenue before and after the increase in tuition
fee.

Explain whether the increase in tuition fee is wise decision or not on
the basis of total revenue.

You might also like
The free rider problem refers to the temptation of individuals to let others provide the public goods , with relevant example show that purely individualistic mechanisms will not generate the optimal amount of a public good because of the free rider problem
WHAT IS THE PRICE ELASTICITY OF DEMAND WHEN THE PRICE CHANGES FROM R4 PER ICE CREAM CONE TO R5 PER ICE CREAM CONE? (USE THE FORMULA FOR ARC ELASTICITY
suppose that your demand schedule for pizza is as follows price: $8,$10,$12,$14,$16 quantity demanded( income $16.000): 40,32,24,16,8 quantity demanded( income $20.000): 50,45,30,20,12 a. use the midpoint method to calculate your price elasticity of demand as the price of pizza increases from $8 to $10 if (i) your income is $16,000 and (ii) your income is $20,000. b. calculate your income elasticity of demand as your income increases from $16,000 to $20,000 if (i) the price is $12 and (ii) the price is $16
Study the information given below and answer the following questions: 4.3.1 Calculate the net present value. (7) 4.3.2 Should ABC Limited consider acquiring the machine? Explain. (1) 4.3.3 Calculate the value of the initial investment at the end of five years, if it is invested at a rate of 12%. (2) INFORMATION The project manager of ABC Limited is contemplating the import of a machine in order to expand the production capacity at one of its projects. The estimated cost of the machine is R500 000 and the revenues from the sales it is expected to generate are R350 000 per year for four years. The cash costs associated with the project are estimated at R150 000 per year. The machine is expected to have a scrap value of R50 000. The cost of capital is 12%.
Suppose that a seller decreases price for his/her good by 5 percent. Discuss how total revenue changes when: i. ∈d=0.5 ii. ∈d=1 iii. ∈d=1.5
State the different ways in which the demand function can be represented
how that the cost function for a firm with the constant returns Cobb–Douglas production function y = Az1^a z2^1-a is given C( p, y) = yp1^a p1^1-a B , where B is a function of A and a only. Sketch the cost curves. Derive the conditional input demands
You have a net income of $40000/year. Your expenses include the following: • Rent: $800/month • Insurance: $225/semi-annually • Car Payment: $315/month • Car Expenses: $1000/year • RRSP: $50/month • Entertainment: $50/week • Cell Phone: $75/month • Food: $500/month a) Create a budget. (5 marks) b) Modify the budget to include a savings plan of $100/week. (2 marks) c) You paid off your car and have decided to buy a house. Your mortgage payment is now $1050/month. Modify the budget to reflect this new financial plan. (2 marks)