Answer to Question #182588 in Economics for nina

Question

 Economist Dr. J Jayranjan found that in introductory economics classes a 10% increase in class attendance is associated with a 4% increase in course grade. What is the elasticity of course grade with respect to class attendance?

Answer 1

If a 10% increase in class attendance is associated with a 4% increase in course grade, then the elasticity of course grade with respect to class attendance is 4/10 = 0.4, so it is inelastic.