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A college raises its annual tuition by​ 25%, and its student enrollment falls by​ 3.5%. Compute the price elasticity of demand. Is demand elastic or​ inelastic? Will TR​ increase, decrease, or remain the​ same? ED​ = nothing ​(round at 2 decimal​ places). What are the units for​ elasticity? A. ​$ B. qty C. elasticity does not have a​ unit; it is just a number D. ​%

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Answer:

Elasticity does not have a unit because it is a pure number

Demand is Elastic

TR decrease due to the demand been elastic. a rise in tuition fee causes the total revenue to decrease

Explanation:

Tuition fees increment  by 25%

Student enrollment decreases by 3.5%

Price elasticity of demand=%change in quantity demanded / %change in price

                                            =  -3.5/ 2.5

                                             = -1.40

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