Let's examine the history of LSUS undergraduate enrollment vs. its tuition and fees. Download the "A3Q1 LSUS enrollment data" Excel file; in it you will see historical information on LSUS undergraduate enrollment, total credit hour production, and (12-hour, undergraduate) tuition and fees. (If you wish, you can verify or look up additional information here, here, and here.)

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 2005 and 2006 values of tuition and headcount and should be about -3.283; the first credit hour elasticity will also be based on the 2005 and 2006 values and should be about -2.855). Calculate the average annual elasticity for headcount (from 2005-2019), and the average annual elasticity for credit hour (from 2005-2019).

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 undergrad enrollment total LSUS credit hour production undergrad tuition and fees 2005 3,940 100,181 $1,621 2006 3,594 92,486 $1,667 2007 3,556 92,123 $1,667 2008 3,903 94,639 $1,751 2009 4,220 101,972 $1,867 2010 4,058 98,137 $2,062 2011 4,134 98,372 $2,247 2012 4,124 93,163 $2,472 2013 3,674 85,292 $2,803 2014 3,202 87,907 $3,084 2015 2,775 91,021 $3,355 2016 2,587 94,077 $3,417 2017 2,638 115,340 $3,417 2018 2,511 137,467 $3,663 2019 2,577 165,057 $3,663