(Answered)-Suppose that as a potential major in Economics, you are - (2025 Updated Original AI-Free Solution

Question

1. Suppose that as a potential major in Economics, you are interested in the effect that tuition has on students applying to UBC. The current tuition for an INTERNATIONAL student is $550.00 per credit. Suppose that UBC currently has 274 registered INTERNATIONAL STUDENTS. To answer your question, you undertake a survey of the current INTERNATIONAL students and asked whether then would have STILL registered at UBC if the tuition had been $700.00 per credit. The result of your survey found that 260 INTERNATIONAL STUDENTS would STILL have registered at UBC.

i. Using the values provided above, and the ?POINT/SLOPE? FORMULA, find the SLOPE and the INTERCEPT for the INTERNATIONAL DEMAND curve at UBC. (3 Marks)

ii. Given your answer to part i above, write out both the INVERSE DEMAND curve AND the ?normal? DEMAND curve (solving for Q rather than P).
(3 Marks)

iii. If UBC decided to raise the INTERNATIONAL TUITION to $800.00 per credit, how many INTERNATIONAL STUDENTS would STILL have registered at UBC? (3 Marks)