Monday, December 18, 2006

Upward Sloping Demand Curve?

Ursinus College, a small liberal arts institution in eastern Pennsylvania raised tuition and fees 17.6 percent, to $23,460 in 2000. Then it waited to see what would happen.

Ursinus received nearly 200 more applications than the year before. Within four years the size of the freshman class had risen 35 percent, to 454 students. Applicants had apparently concluded that if the college cost more, it must be better.

Read more in the NY Times article "In Tuition Game, Popularity Rises With Price."

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