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Unformatted text preview: implement price differentiation. • Students with high SAT scores get higher scholarships, have to pay less, therefore are more attracted to go to the school. • Regular students suffer as a result because tuition goes up and their scholarships don’t. • Some states have lotteries that provide for educational scholarships that are kept up (or not) by students grades. • As students stay in one school their elasticity of demand decreases because even if they lose scholarship money they’re still likely to stay in the same school. • Students who lose scholarships give up that money to new students while tuition keeps going...
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This note was uploaded on 04/24/2008 for the course ECN 102 taught by Professor Seely during the Spring '08 term at Wilkes.
- Spring '08