← Back to Vol. 10 Issue No. 01 — April
Abstract
The percentage change in the price is measured as (ending price – beginning price) / beginning price. The University of Mississippi (UM – Ole Miss) raised tuition (price) by 193% over 25 years through 2024 – from $3,153 in the year 2000 to $9,252, or by $6,099 -- (9,252 – 3,153) / 3,153 = 6,099 / 3,153 = 193%. Increase/decrease in the quantity demanded (student enrollment) is measured as (ending enrollment – beginning enrollment) / beginning enrollment. Total student enrollment was 11,405 in the year 2000 and 27,124 in the year 2024. This was a 138% increase – (27,124 – 11,405) / 11,405 = 15,719 / 11,405 = 1.38 = 138%. In spite of a 193% price increase, there was a 138% rise in students (quantity demanded) for UM. The price elasticity of demand for UM was calculated as 0.8, inelastic. The results imply that UM should raise tuition again to increase revenue.