How can prices and elasticity cause colleges and universities to offer financial aid to low-income students?

1 answer:

5 0

The elasticity of demand for college and university education is elastic. Thus, if the price of education is high, low-income students would decide not to get education. In order to incentivise low-income students, schools offer financial aid.

<h3>What does the elasticity of demand mean?</h3>

Price elasticity of demand measures the responsiveness of quantity demanded to changes in price of the good.

Price elasticity of demand = percentage change in quantity demanded / percentage change in price

To learn more about price elasticity of demand, please check: brainly.com/question/18850846

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