Answered: DLSU is a large private university,…

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

See similar textbooks

Related questions

Question

DLSU is a large private university, that is known for its strong athletics program, especially in basketball. At the request of the dean of the College of Business Administration, a professor from the economics department estimated a demand equation for student enrollment at the university.

Qd = 4,000 – 0.4Px + 0.1I + 0.25Py

where Qd is the number of full-time students, Px is the tuition charged per full-time student per semester, I is real gross domestic product (GDP) (PhP billions) and Py is the tuition charged per full-time student per semester by ADMU University, DLSU’s closest competitor.

Suppose that full-time enrollment at DLSU is 3,000 students. If I = P7,500 and Py = P6,000, how much tuition is DLSU charging its full-time students per semester? Determine if the 2 Universities are substitute or complementary.

The administration is considering a P750,000 promotional campaign to bolster admissions and tuition revenues. The economics professor believes that the promotional campaign will change the demand equation to:

Qd = 4,100 – 0.35Px + 0.1I + 0.25Py

If the professor is correct, what will DLSU’s full-time enrollment be?

Expert Solution

Step by step

Solved in 2 steps

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, economics and related others by exploring similar questions and additional content below.

Similar questions