Reference no: EM132190560
Question: Raise or Lower Tuition?
Suppose that, in an attempt to raise more revenue, Nobody State University increases its tuition. Will this necessarily result in more revenue? Under what conditions will revenue (a) rise, (b) fall, or (c) remain the same? Explain this process, focusing on the relationship between the increased revenue from students enrolling at NSU despite the higher tuition and the lost revenue from possible lower enrollment. If the true price elasticity were -1.2, what would you suggest the university do to expand revenue? If you were the president of NSU, how would you tackle this problem based on what you have learned in this course?
The Raise or Lower Tuition paper
1. Must be three to five double-spaced pages in length (not including title and references pages) and formatted according to APA style as outlined in the
a. Must include a separate title page with the following:
• Title of paper
• Student's name
• Course name and number
• Instructor's name
• Date submitted
b. Must use at least two scholarly sources from the Ashford University Library in addition to the course text.
• The Scholarly, Peer Reviewed, and Other Credible Sources (Links to an external site.)Links to an external site. table offers additional guidance on appropriate source types. If you have questions about whether a specific source is appropriate for this assignment, please contact your instructor. Your instructor has the final say about the appropriateness of a specific source for a particular assignment.
2. Must document all sources in APA style as outlined in the Ashford Writing Center.
3. Must include a separate references page that is formatted according to APA style as outlined
4. Please be sure to address price elasticity as you write this paper. Do not talk about general revenue and expenses of college tuition. How does it relate to elasticity?
5. The bullet points in the assignment are each part of the grading rubric. So make sure you address each piece.
6. Start with a good introduction. I mean to the ordinary (someone who hasn't had economics) person, the more money you collect, the more revenue is correct? However you need to bring in some of the principles in the chapters that talk about elasticity and nonelasticity.
7. So then speak about the second bullet point. When would revenue rise, fall or remain the same? Start off by defining what elasticity is or what makes something nonelastic?
8. For the third bullet point here is where the rubber meets the road. Is tuition elastic or nonelastic? Will there be more money but less students? Or will the student population remain the same?
9. Next point gives an actual elasticity percent. Look at the chart on page 91 Discuss what would actually happen if the school raised it's tuition. (Also, IGNORE THE NEGATIVE SIGN). Here's an article that can help you for your paper
10. Carter, R. E., & Curry, D. J. (2011). Using Student-Choice Behavior to Estimate Tuition
11. Elasticity in Higher Education. Journal of Marketing Management, 27(11-12), 1186-1207.