Answer to Question #284651 in Microeconomics for Isabelle Dias

Question

According to what you've learned about the price elasticity of demand, do you think that education in community colleges has an elastic or inelastic demand? Why? Explain your answer

Answer 1

The price elasticity of demand represents the responsiveness of quantity demanded in the market relative to increase or decrease in price of a product. Education in community colleges has an inelastic demand. It is because the rise in average prices (fees) of collage education don’t affect the number of students who are going to college. Education is a necessity think for the community. So, all parents want to give good education to their child whether fees of particular collage are high. Most of the parents and students are ready to pay higher fees for the college education regardless of the rise in prices education. The demand for collage education is generally remained constant with change in the prices.