Part One: Show your work - At Tumbleweed Tech Academy (because of budget restraints) the school was forced to raise tuition and fees from $1,000 to $1,600 per quarter. As a result of the result of the increased cost, enroll fell from 8,200 to 8,000. What is the price elasticity of demand?

The price elasticity of demand is 0.04

Explanation:

Price elasticity of demand = percentage change in enroll : percentage change in tuition and fees

Percentage change in enroll = (8200-8000) / 8200 * 100 = 2.44%

Percentage change in tuition and fees = ($1600-$1000) / $1000 * 100 = 60%

Price elasticity of demand = 2.44% : 60% = 0.04