Determine price elasticity of demand for dormitory space
Question: What effect would a rule stating that university students must live in university dormitories have on the price elasticity of demand for dormitory space? How might this rule affect room rates?
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How can the income and substitution effects of a price change help explain this? Review price elasticity of demand and supply.
What effect would a rule stating that university students must live in university dormitories have on the price elasticity of demand for dormitory space?
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