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    Determine the implied price elasticity of demand

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    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

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    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