This paper examines the effects of cost, quality and macroeconomic factors on the demand for higher education (represented by the share of admitted freshmen choosing to enroll) at a group of selective liberal arts colleges over the period from 1988 to 1998. Students are segregated by their financial-aid status with different demand equations estimated for each. Students who have no financial need or did not apply for aid are found to have a tuition elasticity close to unity, implying that a 1% increase in tuition will lead to about a 1% decrease in enrollment yield. The analysis of aid recipients suggests that both relative tuition and financial-aid levels play a significant role in determining the enrollment yield of a college. Tuition and room and board levels negatively affect the enrollment yield of this group of students, while grants and loans increase the likelihood of enrollment of admitted students. The evidence on the effects of school quality variables and macroeconomic factors is weak. There is some evidence that a higher ranking in the US News and World Report college guide increases yield, but specific quality measures such as SAT scores have little statistical significance.