Problem
University fees in the State of Nirvana have been frozen in real terms for 10 years. During this period enrolments increased by 20 percent.
(a) Draw a supply curve and two demand curves to represent the two equilibria described.
(b) Can you estimate a price elasticity of demand for university education in this market?
(c) In contrast, during the same time period fees a neighbouring state increased by 60 percent and enrolments increased by 15 percent. Illustrate this situation in a diagram.
The response should include a reference list. Double-space, using Times New Roman 12 pnt font, one-inch margins, and APA style of writing and citations.