Solve the following problems using Excel. Solutions 1. (10 points; 3 for parts a and b, 4 for part c) Gridiron Universit

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Solve the following problems using Excel. Solutions
1. (10 points; 3 for parts a and b, 4 for part c) Gridiron
University is a North Carolina state university that wants to
attract both undergraduate and graduate students. Data suggest that
undergraduate enrollment can be described by the equation:
Qu = 25,000 – Pu
where Qu = undergraduate enrollment and Pu = undergraduate
tuition.
Graduate enrollment is given by:
Qg = 13,500 – 0.5Pg.
where Qg = graduate enrollment and Pg = graduate tuition.
a. If the goal of the university is to maximize total revenue,
determine tuition, enrollment and demand elasticity for each type
of student.
b. Because of a faltering state economy, the university
anticipates budget cuts that will limit total enrollment to 11,000
students next year. If the University goal is to maximize total
revenue, determine undergraduate and graduate tuition and
enrollments.
c. Suppose that the marginal cost to the university of each
additional student is $7,000. Determine the tuition charges if the
university wishes to maximize profits. You may solve by trial and
error or using Solver.