Questions:

1. Using the determinants of price elasticity of demand, going tocollegeis anelastic or inelasticgood?
2. State the factors and then support the answer. (You should providemore than one factor.)
3. Often times when a college has over crowded parking, they raise the price of parking permits to lessen the problem.Does this policy work? Explain why or why not usingsupply and demandand/orelasticity.

Hints:

1. Use 2 of the factors in the analysis (type of good, number of substitutes, and portion of income asit relates to college and college parking).Do not use time horizon, this is only used when comparing elasticity of a good at two different points in time.
2. Should have 2 factors for college and 2 for college parking.
3. Consider ifbuyers are highly responsive to a change in the price of college and/or parking or not and why?