Knowledge

     The concept of knowledge has to be acquired. The process of buying higher education involves multiple steps and decisions which makes it a unique product. Students at community colleges and universities depending on their academic credentials may not be granted the privilege of purchasing the product. 

     Discounts may be offered depending on the financial needs and merits based on the students. Federal and State loans are offered at higher interest loans and can make it difficult for someone studying higher education to measure the appropriate the price. 

     These factors make estimation of the demand elasticities for colleges difficult. The only substitute for higher education is not going to college. The probablitity of attending a higher education school is affected by prices, family income, students academics, and other variables. 

     With the award of financial aid packaging on enrollment probability, there is a $1000 increase in grants and raises the probability by about 11% and an extra $1000 in loans increases it by about 7%. For full paying students, there was found to be an own-price elasticity of -0.76. For financial aid students, BPR has a larger own-price elasticities of -1.18

% changeinquantity%changeinpricePrice elasticity of demand========3,000–2,800(3,000+2,800)/2 × 1002002,900 × 1006.960–70(60+70)/2 × 100–1065 × 100–15.4    6.9%–15.4%0.45

Well this was my formula example for calculating Tution prices and Students.

Price elasticity of supply​=​% changeinprice% changeinquantity​​

Another formula example that can be implemented for calculating price and quantity of supply.