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
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 ...
Determine the implied price elasticity of demand