Calculate annual elasticities for both types of quantity variables (i.e., you will have an elasticity of price vs. headcount, and one of price vs. credit hour). You will get an error message in your calculations when the tuition doesn't change (like in 2006-2007), since the elasticity calculation will be trying to divide by zero; just delete those error values in your Excel table so that the cells are blank. The first headcount elasticity will be calculated based on the 2000 and 2001 values of tuition and headcount and should be about -0.008; the first credit hour elasticity will also be based on the 2000 and 2001 values and should be about 0.359). Calculate the average annual elasticity for headcount (from 2000-2019), and the average annual elasticity for credit hour (from 2000-2019).

Many administrators argue that, to increase revenue to LSUS to cover budget shortfalls, tuition should be raised. Comment on this suggestion, using the evidence you've uncovered.

Year

2000

2001

2002

2003

2004

2005

2006

2007

2008

2009

2010

2011

2012

2013

2014

2015

2016

2017

2018

2019

undergrad enrollment

3,422

3,419

3,543

3,655

3,910

3,940

3,594

3,556

3,903

4,220

4,058

4,134

4,124

3,674

3,202

2,775

2,587

2,638

2,511

2,577

total LSUS credit hour production

90,624

94,446

96,039

101,352

101,868

100,181

92,486

92,123

94,639

101,972

98,137

98,372

93,163

85,292

87,907

91,021

94,077

115,340

137,467

165,057

undergrad tuition and fees

$1,025

$1,150

$1,184

$1,442

$1,545

$1,621

$1,667

$1,667

$1,751

$1,867

$2,062

$2,247

$2,472

$2,803

$3,084

$3,355

$3,417

$3,417

$3,663

$3,663