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Calculate annual elasticities for both types of quantity variables. The first headcount elasticity will be calculated based on the 2000 and 2001 values of tuition and headcount and should be about -0.008; the first credit hour elasticity will also be based on the 2000 and 2001 values and should be about 0.359). Calculate the average annual elasticity for headcount (from 2000-2017), and the average annual elasticity for credit hour (from 2000-2017).
Many administrators argue that, to increase revenue to LSUS to cover budget shortfalls, tuition should be raised. Comment on this suggestion, using the evidence you’ve uncovered.
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