In the fall of 2006, Pace University in New York raised its annual tuition from $24,751 to $29,454. Freshman enrollment declined from 1,469 in the fall of 2005 to 1,131 in the fall of 2006. Assuming that the demand curve for places in the freshman class at Pace did not shift between 2005 and 2006, calculate the price elasticity of demand. Use the midpoint formula in your calculation. Is the demand for places in Pace's freshman class elastic or inelastic? Did the total amount of tuition Pace received from its freshman class rise or fall in 2006 compared with 2005? Source: Karen W. Arenson, "At Universities, Plum Post at Top Is Now Shaky," New York Times, January 9, 2007.