A few years ago, YSU decreased the (advertised) tuition rate for its MBA program from $21,000/student to $13,000/student. Within two years, the number of students enrolled in the program increased from 150 to 400.

a.) Use these values to calculate the price elasticity of demand for YSU's MBA program.

b.) What was YSU's revenue from the MBA program before and after this price change?

c.) What else needs to be considered to determine whether this price change had a positive or negative impact on YSU's budget (or 'bottom line')? Under what condition would this price change have a negative impact on YSU's budget?

Answer rating: 100% (QA)

Price Elasticity of Demand for YSUs MBA Program Based on the information provided we can calculate the price elasticity of demand and analyze the reve... View the full answer