You have been hired by Nobody State University (NSU) as a consultant to help the university with how to increase their total revenue. The university has been struggling in recent years, so they have...

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You have been hired by Nobody State University (NSU) as a consultant to help the university with how to increase their total revenue. The university has been struggling in recent years, so they have hired you to help them in their last attempt to find an appropriate solution so that the university can survive. Raise or Lower Tuition? Suppose that, in an attempt to raise more revenue, Nobody State University increases its tuition. Assess a raise in tuition and if it will necessarily result in more revenue.
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You have been hired by Nobody State University (NSU) as a consultant to help the university with how to increase their total revenue. The university has been struggling in recent years, so they have hired you to help them in their last attempt to find an appropriate solution so that the university can survive.  Raise or Lower Tuition? Suppose that, in an attempt to raise more revenue, Nobody State University increases its tuition.  Assess a raise in tuition and if it will necessarily result in more revenue.Describe the conditions under which revenue will (a) rise, (b) fall, or (c) remain the same.Explain the process of revenue at NSU, 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), discuss what you would suggest the university do to expand revenue.Using what you have learned in this course, explain how you would resolve this problem if you were the President of NSU. In a three- to five-page paper (not including title and reference pages), provide subheadings or separate paragraphs for each of the questions listed to help focus your paper for the executives that have requested it. Support your paper with at least two academic sources from the Ashford Library. You are required to format you paper according to APA style guidelines.

Answered Same DayDec 31, 2021

Solution

David answered on Dec 31 2021
27 Votes
Nobody State University (NSU)
Raise or Lower Tuition
Increase in Tuition Fee and Total revenue
It is the price elasticity of demand that would determine how increase in Tuition fee
would affect the total revenue of Nobody State University (NSU) i.e. whether the increase in
Tuition Fee would cause total revenue to increase, decrease or remain same depends on the fact
that whether the demand is inelastic, elastic or unitary. Price elasticity of demand measures the
degree of responsiveness in quantity demanded of a good due to change in its price. It is cal
If demand is elastic (or if absolute value of elasticity is less than one), then proportionate
decline in quantity demanded of a good (as a result of increase in price) will be larger than
proportionate increase in its price and therefore in this case, increase in price would cause total
evenue to fall.
If demand is inelastic (or if absolute value of elasticity is less than one), then
proportionate decline in quantity demanded of a good (as a result of increase in price) will be
less than proportionate increase in its price and therefore in this case, increase in price would
cause total revenue to increase.
If demand is unitary (or if absolute value of elasticity is equal to one), then proportionate
decline in quantity demanded of a good (as a result of increase in price) will be equal to
proportionate increase in its price and therefore in this case, increase in price would cause no
change in the total revenue.
Conditions under which revenue will (a) rise, (b) fall, or (c) remain the same
As explained above, if demand is elastic, increase in the tuition fee would cause total
evenue to fall; if demand is inelastic, increase in the tuition fee would cause total revenue to
increase; or if demand is unitary, increase in the tuition fee would cause no change in the total
evenue of Nobody State University (NSU).
We can prove the same...
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