1. A college raises its annual tuition from $23,000 to $24,000, and its student enrollment falls from 4,877 to 4,705. Compute the price elasticity of demand. Is demand for the college elastic or...

1. A college raises its annual tuition from $23,000 to $24,000, and its student

enrollment falls from 4,877 to 4,705. Compute the price elasticity of

demand. Is demand for the college elastic or inelastic?





2. As the price of good X rises from $10 to $12, the quantity demanded of

good Y rises from 100 units to 114 units. Are X and Y substitutes or

complements? What is the cross elasticity of demand?