Application1.7, In fall2006, Pace University in New York raised its annual tuition from $24,600 to $29,500. Freshman enrollment declined from 1,425 in fall 2005 to 1,110 in fall 2006. Assuming that the demand curve for places in the freshmen class at Pace did not shift between 2005 and2006, use this information to calculate the price elasticity of demand.

Source: KarenW.Arenson, "AtUniversities,Plum Post at Top Is NowShaky," New York Times, January9, 2007.

The price elasticity of demand for Pace University for the Fall of 2006 is __________. (hint: enter your response rounded to two decimal places.)

The demand for places inPace's freshmen class isprice- elastic/inelastic/unitary elasticity.

Calculate the total revenue generated fromPace's freshman class in 2005 $_________.

Calculate the total revenue generated fromPace's freshman class in 2006 $___________.

The total amount of tuition Pace received from its freshman class rose/fell in 2006 compared with 2005.