"The responsiveness of consumers to a change in the price of a product is measured by the price elasticity of demand. If demand is elastic, a decrease in price will increase total revenue. Even though a lower price is received per unit, enough additional units are sold to more than make up for the lessor price. Also, the reverse is true; an increase in price will decrease total revenue." "If demand is inelastic, a price decrease will reduce total revenue. The relatively small increase in sales will not offset the decline in revenue per unit. The analysis is reversible; if demand is inelastic, a price increase will increase total revenue." The percentage change in the price is measured as (ending price - beginning price)/beginning price. Mississippi State University (MSU) raised tuition (price) by 126% over 15 years from $3,117 in the year 2000 to $7,040 in 2014, or by $3,923 -- (7,040 - 3,117)/3,117 = 3,923/3,117 = 126%. Increase/decrease in the quantity demanded (student enrollment) is measured as (ending enrollment - beginning enrollment)/beginning enrollment. Total student enrollment was 15,764 in the year 2000 and 20,219 by the year 2014. This was a 28% increase -- (20,219 - 15,764)/15,764 = 4,455/15,764 = 0.28 = 28%. In spite of a 126% price increase, there was a 28% rise in students (quantity demanded) for MSU. The price elasticity of demand for MSU was calculated as 0.32, inelastic. The results imply that MSU should raise tuition again to increase revenue.