I have already calculated the elasticities but now I am having trouble interrupting what it all means. Using the data that I have provided, I need some detailed explanations on how to correctly answer these questions. I don’t need just the answers. Please provide the explanation of how you came to your answers. Thank you.
a. What is the headcount elasticity is approximately equal to?
b. The average (over all years) headcount elasticity is approximately _______ and the demand in terms of headcount would be considered ________
c. What is the approximate average (over all years) credit hour elasticity?
d. Many administrators argue that to increase revenue to cover budget shortfalls, tuition should be raised. Is this the correct thing to do? What does the credit hour elasticity estimate suggest?