A Study of About 1800 U

Multiple Choice

A study of about 1800 U.S. colleges and universities resulted in the demand equation where q is the enrollment at a college or university and p is the average annual tuition (plus fees) it charges. The study also found that the average tuition charged by universities and colleges was $2,127. What is the corresponding elasticity of demand?

A) 1.55
B) 0.30
C) 1.16
D) -0.78
E) 0.78