Principles of Microeconomics: Raise or Lower Tuition?
Raise or Lower Tuition?
Suppose that, in an attempt to raise more revenue, Nobody State University increases its tuition. Will this necessarily result in more revenue? Under what conditions will revenue (a) rise, (b) fall, or (c) remain the same? Explain this process, focusing on the relationship between the increased revenue from students enrolling at NSU despite the higher tuition and the lost revenue from possible lower enrollment. If the true price elasticity were -1.2, what would you suggest the university do to expand revenue? If you were the president of NSU, how would you tackle this problem based on what you have learned in this course?
The Raise or Lower Tuition paper
• Must be three to five double-spaced pages in length (not including title and references pages) and formatted according to APA style as outlined in the Ashford Writing Center.
• Must include a separate title page with the following:
o Title of paper
o Student's name
o Course name and number
o Instructor's name
o Date submitted
• Must use at least two scholarly sources from the Ashford University Library in addition to the course text.
o The Scholarly, Peer Reviewed, and Other Credible Sources table offers additional guidance on appropriate source types. If you have questions about whether a specific source is appropriate for this assignment, please contact your instructor. Your instructor has the final say about the appropriateness of a specific source for a particular assignment.
• Must document all sources in APA style as outlined in the Ashford Writing Center.
• Must include a separate references page that is formatted according to APA style as outlined in the Ashford Writing Center.
Carefully review the Grading Rubric for the criteria that will be used to evaluate your assignment.
Materials:
• Amacher, R., & Pate, J. (2013). Microeconomics principles and policies [Electronic version]. Retrieved from https://content.ashford.edu/
Articles
• Bailey, M. J. (1980). The marginal utility of income does not increase: Borrowing, lending, and Friedman-savage gambles. The American Economic Review, 70(3), 372-379. Retrieved from https://www.aeaweb.org/journals/aer
• The full-text version of this article is available through the EBSCOhost database in the Ashford University Library. This article will assist you in your learning activities this week.
• Beattie, B. R., & LaFrance, J. T. (2006). The law of demand versus diminishing marginal utility. Review of Agricultural Economics, 28(2), 263-271. Retrieved from https://onlinelibrary.wiley.com/journal/10.1111/(ISSN)1467-9353
• The full-text version of this article is available through the JSTOR database in the Ashford University Library. This article will assist you in your learning activities this week.