An old study about 1,800 U.S. colleges and universities resulted in the demand equation = 9,900 2.2, where is the enrollment at a college or university and is the average annual tuition (plus fees) it charges.

1. Find .Remember =

2. The study found that the average tuition charged by colleges was $2900. What would the price elasticity of demand be at $2900? Is that tuition price elastic or inelastic and what does that mean?

3. What would the effect on the price elasticity of demand have been if the price had been lowered to $2200? Is that tuition price elastic or inelastic and what does that mean?

4. Knowing the values of for a price of $2900 and $2200, what does that suggest about the about the tuition price corresponding to the maximum annual revenue?

5. Based on the study, what would you have advised a college to charge its students to maximize total annual revenue?

6. Based on your answer to part e) what would the resulting enrollment and revenue have been?