"Economics and Quantitative AnalysisTABLE OF CONTENTSPURPOSE ....................................................................................................................................... 1METHOD ....................................................................................................................................... 1RESULTS ....................................................................................................................................... 1DISCUSSION ................................................................................................................................. 3RECOMMENDATIONS ................................................................................................................ 4REFERENCES ............................................................................................................................... 5 PURPOSEThe main aim of undertaking this study was to undergo economic and quantitativeanalysis. Under this report calculation of the elasticity of demand for the university courses hasbeen undertaken. METHODThe method adopted for carrying out the economic analysis includes that states thatuniversities has increased their fees by 35% and there have been overall decrease of studentsapplication by 7%. On the other hand, 35% fee increase at the universities that increased fees haslead to increase students applications by 12% in those universities which did not increased theirfees. RESULTSThe results indicated about the state in which universities increase their fees by 35% andthere is overall decrease in student’s application by 7%. In this respect it has been identified thatprice elasticity of demand is relatively Elastic Demand for the courses at the universities thathave increased their fees by 35%. Even it has been identified that demand for the courses will beelastic because the degree to which the university will increase their fees is affecting the overalldecrease in the student’s applications. This shows elasticity as demand or supply reacts all due tochange in the price (Zhelobodko.et.al., 2012). It has also been revealed that factors that areresponsible for the degree of elasticity are increase in the fees and decrease in student’sapplication. Even it has been seen that if university is going to increase the fees then it is going to1 lay down affect on their tuition fees. In this respect it can be said that there will be increase in theoverall tuition fees that will be charged by the university from the students (Epstein.et.al., 2012).The another results are regarding 35% fee increase at the universities that increased feeshas lead to increase students applications by 12% in those universities which did not increasedtheir fees. In this respect it has been identified that substitute’s products for an individual will behaving positive cross elasticity of demand. Even under this case universities are seen to besubstitutes of each other, if fees of one university will increase then it is going to increase thedemands of another university as students will take admission in those universities with lesserfees. Report even indicates that courses offered within the university by the student are seen tobe substitute of each other (Zanotti.et.al., 2015). Hence, it can be said that the course offered atdifferent universities is seen to be substitutes for them. Further, report explored that the demandfor the courses at the university will be elastic for the universities that did not increase their feesconcerning the universities that increased their fees. It is because elastic is a situation underwhich there is huge affect of the price on the demand of the product (Zhelobodko.et.al., 2012).Even it can be laid down that if a university is going to increase their prices without looking afterthe demand in the market will make them loose their students to some other universities (Raissiand Tulin, 2015). Research even revels about the factors that might cause the minister ofeducation to argue that changes in demand for courses and are not necessarily related to the feechange will be due to innovative courses, better placements and better education and teachingenvironment. 2 DISCUSSIONFrom the economic analysis undertaken in this report for elasticity demand for theuniversity showed that there is relatively elastic demand if universities are going to increase theirfees and there is decrease in the student’s applications. This indicates that proportionate changeproduced in demand is seen to be greater than proportionate change in price (Cooper, 2003).Even the numerical value for relatively elastic demand is seen to between one to infinity.Reporteven showed that Elastic is all about a situation under which degree of change in demand andsupply fluctuates all due to change in the price of the product. Even it can be said that elasticityis all about the affect laid down by change price on the demand and supply of the product(Figueroa.et.al., 2011). Economic analysis also showed that of there is increase in the universityfees (price) then there will be decrease in the student applications (demand). Hence, it can clearlybe stated that major reason of elasticity is all because of two factors that is increase in the feesand decrease in student’s application. Study even reveals that there will be huge increase in theoverall tuition fees if the percentage of total fees will be increased by 35%. It is going to increasethe overall revenue of the universities in terms of tuition fees. Report also showed regarding Cross-Price Elasticity of Demand that helps in measuringthe degree of change in the demand of one product when there is change in the price of anotherproduct. In this respect it can be said that if products are seen to be substitutes then under thatsituation the individual be more inclined towards another product if the price of substituteproducts is lower. In the similar manner if the cross elasticity of demand for courses atuniversities will be higher for those universities who do not increase their fees with respect toprice of universities that increased their fees (Nowak and Savage, 2013). Further, it has beenidentified that substitutes in economics or consumer theory can be defined in simple term to be a3 product or service that consumer seems to be similar with another product in the market. This isbecause different universities offer similar kind of courses at their campus that are seen to besubstitute by a student taking admission in these universities. Hence, in this respect it can be saidthat for a student universities are seen to substitute. If they do not find the requirements of thecourses as per their requirements will allow them to shift towards another university. Further, ithas been identified that if universities which are not going to increase their fees (price) will behaving enhanced students applications (demand) within their university. Report also revealsabout the importance of degree of elasticity as it is seen to be highly crucial while makingdecision pertaining to pricing. Thus, it can be said that it is very crucial for university to lookafter the elasticity of demand if they are making necessary changes in the pricing decision offees.RECOMMENDATIONSFrom the above report recommendation that can be detailed is that it is crucial for theuniversity to look after the market scenario and then bring out changes in the fees structure oftheir university. It is because the market of education is seen to be having relative elasticdemand. This indicates that change in the fee structure is going to lay down great affect on theirworking as university will be undergoing reduced students application. Even it can berecommended strongly that universities are seen to be substitute in the market and students canshift from one university to another if they do not find their requirements as per their need.Hence, proper economic analysis needs to be initiated by universities regarding the market andthen on that basis they must bring change in their fee structure. 4 "