Works Cited:
Hsu, Tiffany. "More Employers Demand College Degrees, Study Finds." Los Angeles Times. Los Angeles Times, n.d. Web. 09 Dec. 2014.
Sunday, December 11, 2016
Supply and Demand of Higher Education
Supply is the amount of a good sellers are willing to make and sell at a given price. Demand is the amount of a good buyers are willing to buy at a given price. In my previous blog and according to Satista.com, the demand for a higher education has risen because a college degree is an indication to someone else that you possess an ability not everyone has or can obtain. As stated in the LA Times, landing a job that leads to a middle-class living may be getting harder for the two-thirds of American workers who are not college graduates, as more employers demand bachelor’s degrees from applicants. The difficulty to get a job and demand to get a job are simultaneously increasing because the demand for a job that requires a college education is rising.
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The higher education market is selective through their admittance of what the school can accept and how they identify individuals that will attend through their applications and scores mostly. As this is, some people may have the money to attend college but may not get accepted due to the school’s acceptance rate and space available. This leads to there being an excess demand for higher education because schools don’t have the space for everyone to go. For private higher education total enrollment tends to be at a standstill for smaller schools while larger universities increase their enrollment by minuscule amounts. So their supply is barely moving right while you have a majority of people willing to pay the price to go to an an institution being cut off. This all comes with the increasing amount of people wanting to go to college because they believe it will help them become more successful in life to get a better job.
ReplyDeleteAccording to the National Center for Education Statistics in the 2013-2014 school year, public colleges have a lower average tuition rate than privates schools. Because of this difference in tuition rate the demand for public college will be higher. Most families take price of tuition into account when looking for a college for their kid. For private schools, most applicants will have the money and be more interested in the school because it may be associated with their religion, or the specific major they want. Since the demand of college is increase the supply is increasing, with more and more colleges entering the market. With the demand of public school being higher than private, there will be more public colleges.
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