I find it difficult to step outside of myself when it comes to elasticity and try to think of the greater population and how they would react to price changes. When it comes to education I would go to any lengths to get what I want. If I wanted to be a nurse, I would enroll right now, I wouldn't price shop, but I would definitely attend an institution that works for me whether it be by reputation, distance from home, or flexibility in schedule. I would ask my employer for monetary assistance, take out a loan, apply for scholarships, etc. and would take the course regardless of how much it costs. However, I realize that not everyone even has a job where they can reach out to their employer, they are debt shy, or aren't eligible for student loans, and therefore elasticity of demand is higher for them.
The article, Tuition Elasticity of the Demand for Higher Education Among Current Students: A Pricing Model, http://www.questia.com/googleScholar.qst?docId=5000354133, clearly states that demand for education is elastic and higher prices in tuition can greatly influence the number of students that attend any institution in any given year.
Studies show that students are requesting more and more studies online and through distance education to align with and fit in with their busy schedules, as well as their pocketbooks. Since online education carries less cost than if you were to physically attend the institution (e.g. lower cost for supplies, equipment, travel), institutions need to take these factors into account when putting together their tuition pricing models.
The following article, Price Elasticity of Demand for Education At a Private University, http://www.jstor.org/pss/27536388, outlines the elasticity coefficients used in determining the effect of tuition increases on enrollment.
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