# Determine the implied price elasticity of demand

When the British government tripled university fees for foreign students in Great Britain, about one-half of them left to study in other countries

a) What is the implied price elasticity of demand by foreigners for a British education is (in absolute value), explain

b) What do you think happened to university revenues from foreign students in Great Britain? Explain

https://brainmass.com/economics/demand-supply/determine-the-implied-price-elasticity-of-demand-354323

#### Solution Preview

1. the implied elasticity is inelastic. Price went up by 300% while demand only went down by 50%, then the demand must be inelastic (if demand went down by 300% as well, then it is unit elastic, and if demand went down ...

#### Solution Summary

Determine the implied price elasticity of demand

$2.19