...In today’s society, the opinion of many that after high school a student must attend college to obtain a four-year bachelor degree. The amount of years people spend at college varies. 65.9% of Americans further their education after high school. An important decision after high school for students is to further their education while considering the cost, importance of a four-year degree, and debt from college. All goods and services eventually go up in price. Each year, college prices rise 4.5% for private colleges, and 8.3% for public colleges. An average price, “for the 2012–13 academic year, annual current dollar prices for undergraduate tuition, room, and board were estimated to be $15,022 at public institutions, $39,173 at private nonprofit...
Words: 438 - Pages: 2
...College in today’s society has become less of an option and more of a necessity. When it comes to looking for jobs, internships, and even business loans, your education background is one of the first things reviewed. A solid education will allow for opportunities that may not have been available without it. In previous decades college was looked at as a luxury and therefore not essential for such opportunities. With today’s new fad of attending college it has made the job market extremely competitive. And with this competition the better education background you have, the more of an advantage you have over others. Many base success on your career and status which is often founded by a good education. Like anything, education has its cost and it does not come cheap. The average college student graduates with 26,000 dollars in debt. As it may seem college is expensive enough. However, because of inflation, the demand for a solid education, technology, and resources, college cost is increasing at a rapid rate that will not only affect the common student but also take a toll on the society as a whole. Inflation is usually known to be the cause of the general cost of living increasing over time. Inflation causes the consumers buying power to be decreased. With the price of foods, goods, and services increasing, that also includes college. Naturally as cost increase we seek more income. That is not to leave out the incomes of college authorities and staff, they also expect more...
Words: 968 - Pages: 4
...Why is college so expensive? Presentation Rationale Purpose: The purpose of this speech is to inform my audience of why college is so expensive and the information I discovered of how college tuition has gotten out of control over the last decade. Intended Audience: My audience for this speech are students and parents who want to know what is causing tuition to rise and want to know what they can do about it. Significance: This topic is very significant to my audience because the cost of higher education is increasing every year and for many becoming unattainable due to the cost. This is relevant because if the government and the Department of Higher Education can find ways to lower the cost. Then people can further their education which can help other areas such as unemployment. Presentation Plan 1. Introduction a. Attention-getting opening: Imagine back in 1984, the year I was born; the cost to go a 4 year college was only roughly $2,567 a year according to the National Center for Education Statistics (2007). Now jump to present day the average to go to a 4 year college is approximately $112,000 in 4 years (Forbes, 2015). That is over a 109% increase. Where is the money going? To put this in perspective during the same time period medical care increased by 117%, a new home 90% and the median for families incomes only increased by an average of 70%. b. Thesis Statement: Research shows that higher education is one of the most costly investments that Americans...
Words: 1065 - Pages: 5
...enrollment, it also provides a major revenue source to an institution. The question which universities must answer is, “What effect will raising or lowering the university’s tuition have on the total earned revenue? This paper investigates this question and reviews under what conditions a change in tuition prices will cause the revenue to rise, fall, or remain constant. Finally, applying a hypothetical tuition elasticity coefficient of demand for education value of -1.2, provides a tuition increase recommendation to the Nobody State University’s president and administration board based upon the university’s potential revenue impact. Historically, the demand for a university or college education has not reduced as prices have risen. In fact, even though prices have gone up, the number of college applicants has continued to rise. Meagan Pant writes in her article in the Tribune Business New, “The majority of Americans think college is too expensive for most people to afford -- although the widely held opinion has not hindered skyrocketing enrollment or stopped virtually all parents from expecting their child go to college.” (Pant, 2012) In these days of tighter budgets, college administrators must now consider if this trend will continue. Glenn Bryan and Thomas Whipple expand on this thought in their paper, Tuition elasticity of the demand for higher education among current students: A pricing model, published in The Journal of Higher Education. They state, “Establishing tuition...
Words: 1309 - Pages: 6
...2013 Abstract A college board in Pennsylvania has increased its tuition and fees to the amount of $23,460; a 17.6 increase from the previous year. An increase of 200 additional students inquired to further their education at the college than the prior year. Most college presidents would attribute this to students believing the college is better if the cost is more. Like other major colleges such as Rice University, University of Richmond and University of Notre Dame, the perception is students of prestigious schools believe costs are related to a better education. To contrast this, 10 years ago, North Carolina Wesleyan College reduced it cost of tuition and fees by 22 percent and watched its number student application fall. Recommendations to resolve the school’s cash flow problems may include the future increase of tuition and fees. This case study deals with the managerial decision of setting tuition and financial. Many factors are associated with demand and price elasticity of demand. There is an economic relationship between demand and price? After reading this paper, student will have a better understanding of those things that may affect tuition and fees for colleges. Introduction An individual can demand so many things. The concept of demand can be easily explained. Every person has a demand. The purchasing power of a demand satisfies the want. The amount of product or service that is needed by a person at a given price is the demand of that product or...
Words: 1584 - Pages: 7
...realize that this is not true. In today’s society, determination alone will not bring you success. In fact, the only thing that will set you on the right direction is an expensive piece of paper that only increases in price as time goes on. “More than half of bachelor degree recipients at four-year for profit institutions carried education debt of $30,500 or more during the 2007-2008 academic year, compared with 24 percent of those at private four-year institutions and 12 percent at public four-year schools” (Clemmit). A college education is meant to prepare people for a desired career where they can hope to attain the American Dream but unless you come from a wealthy family, paying for this education could take the rest of your life. With constant budget cuts in education, universities are forced to increase tuition prices dramatically which results in students graduating with large amounts of debt and no guarantee of a job to pay it off. Raising tuition prices is unfair to the students hoping to accomplish their dreams and live life the way they choose. Universities are taking advantage of people coming out of high school willing to do whatever it takes to prepare themselves for the career they desire. Something should be done to stop these schools from raising prices so high that taking a loan out is a common practice to pay for school. American families are having a hard enough time as it is with the recession and the housing market fallout to even consider putting more debt...
Words: 1501 - Pages: 7
...student get an education or fallen because of the government is raising taxes on tuition or lowering tuition. It is hurting millions of students that are attending here and it is my job to help find ways to increase the tuition instead of lowering it for students that can’t pay out of pocket expenses. The purpose of this is to find ways to improve the increase in revenue and answer the following questions that Nobody State University wants me to help resolve this issue. 1. Assess a raise in tuition and if it will necessarily result in more revenue. 2. Describe the conditions under which revenue will (a.) rise, (b.) fall, or (c.) remain the same. 3. Explain the process of revenue at NSU, focusing on the relationship between the increased revenue from students enrolling at NSU despite the higher tuition and the lost revenue from possible lower enrollment. 4. If the true price elasticity were (-1.2), discuss what you would suggest the university do to expand revenue. 5. Using what you have learned in this course, explain how you would resolve this problem if you were the President of NSU. RAISE OR LOWER TUITION? 3 Assess a raise in tuition and if it will necessarily result in more revenue. There have been a lot of issues about the raises in tuitions and if the school has to collect more revenue from the tuition that the students have then it could become a major problem...
Words: 1531 - Pages: 7
...SolutionsExpert Q&A TUTORS TEST PREP SATACT INTERNSHIPS Internships & JobsCareer ProfilesAdvice COLLEGES ExploreMy ListAdviceScholarships MENU 2016-03-16T03:55:28 HTML: <NOSCRIPT data-reactid=".0.0.0"> 2016-03-16T03:55:28 HTML: </NOSCRIPT> Cancel NotificationsMark all as read No new notifications Letha Leaf lleaf@sc.rr.com My profile My account My orders Chegg Study subscription Chegg Tutors subscription Return books Track books Sell books Help Sign out SubmitClose Home HomeBooks STUDY Textbook SolutionsQ&ATutors NEW CAREER CENTER CareersInternships CollegesScholarships home / study / business / economics / questions and answers / the demand in japan for gasoline is inelastic and ... Question The demand in Japan for gasoline is inelastic and therefore not very sensitive to market prices. Given that, describe the effect of each of the following on the quantity demanded or the demand for gasoline in Japan. Indicate whether the effect of each is an upward or downward movement along a given demand curve or instead involves an outward or inward shift in the demand curve for gasoline. Explain your answers. a. A sharp increase in the average price of gasoline in Japan.b. A sharp rise in the price of automobiles in Japan.c. A fall in the price of public transportation in Japan.d. A fall in the price of electic powered cars in Japan. Comment Comments Expert Answer Suresh Reddy Suresh Reddy...
Words: 1507 - Pages: 7
...out of college because they cannot afford college. Ever since college tuition went up in the 1960s, the student loan debt has risen. Student loan debt takes a major effect of student’s lives after college is over and they must start paying their loans off. On average, students take out as much as $28,000 to $30,000 of student loans (Holland). Taking out these large amounts of loans cause students to dig a hole of financial debt for themselves. From the history of student loan debt to the current solutions that could solve the debt issue, student loan debt will always be a constant issue in students’ lives unless drastic measures are taken to...
Words: 1739 - Pages: 7
...Case Assignment Chapter 4 8/31/2014 MBA-540 Chapter 4: Setting Tuition and Financial Aid 1. Evaluate Susan’s analysis and recommendation. At first sight it is easy to see why Susan would believe that the demand for applying to a college increases when the cost of tuition is increased, based off the statistics seen at colleges such as Ursinus College and Wesleyan College. Ursinus increased the cost of tuition and the demand increased. Wesleyan did the opposite and decreased there tuition and the demand decreased. Susan’s belief in an upward slope, where the quanitity demanded increased with price, is seen as a Giffen good. Giffen good is when “a good for which a demand increases as the price increases and falls when the price decreases” (Investopedia, 2014). This contradicts the law of demand. As discussed in the text the law of demand refers to the demand curve sloping downwards because individuals buy less of a good and not more when the price increases (Brickley, Smith & Zimmerman, 2009). Giffen good is very rare to the point where there is actual debate about their existence, because the good in question must be considered an inferior good and there must be a lack of close substitutes (Investopedia, 2014). It would be irresponsible as a consultant to make a decision based on just Susan’s theory, especially when there could be other factors that not being considered for the affects of this demand increase over the increase in tuition. It is important...
Words: 614 - Pages: 3
...~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~ 1. A supply schedule shows |a. |the "market potential" for a product. |d. |how much consumers would like to buy at different prices. | |b. |how much producers are willing and able to sell at different prices. |e. |All of the above are correct. | |c. |possible combinations of output under different conditions. | 2. If price rises, what happens to quantity supplied for a product? |a. |It increases. |c. |It does not change. | |b. |It decreases. |d. |Quantity supplied is constant, but supply increases. | 3. Along a supply curve, |a. |supply changes as price changes. |c. |supply changes as technology changes. | |b. |quantity supplied changes as price changes. |d. |quantity supplied changes as technology changes. | 4. If new manufacturers enter the gadget industry, then which of the following will most likely happen with gadgets? |a. |the supply will increase |c. |the quantity supplied will increase | |b. |the supply will decrease |d. |the quantity supplied will decrease | 5. An increase in the price of metal raw materials will result in which of the following in the supply of new cars? |a. |Quantity supplied will increase |d. |Supply will decrease...
Words: 833 - Pages: 4
...discuss and gives some examples and graphs on price discrimination strategies, price ceiling and what happens when the government regulates prices to give them a price ceiling to protect the consumer. I also want to discuss a perfect competitive market and the short and long term effects if demand rises or falls, also, why some long-run average curves are so steep. Lastly, I will explain the rationale and implications of the new guidelines used by DOJ and FTC for evaluating mergers. Problem 1. Sub shop In my sub shop, called Subtown, after some research I have found that with the pricing structure that is currently in place it has not attracted as many college students as I believe we could serve. The average student at the nearby college eats out three to four times a week for lunch and close to five times a week for dinner with the average meal being nine to twelve dollars. The total population of the nearby college is about twelve hundred students. Since the demand for fast food for lunch and dinner for college students is relatively elastic because there is already seven other fast food establishments in the area that are in close proximity to the college as well. One of those is another sub shop, one is a sandwich shop, and there are three burger places a Chinese food place and a taco place. None of these establishments offer a price discrimination strategy in favor of college students. Subtown came to the conclusion that a price discrimination strategy would be the best...
Words: 1683 - Pages: 7
...1. Greatest impact on the increase in the price of cotton have floods that hit the world´s major producers North Eastern China and Pakistan. Early in 2010 these floods disasters “have destroyed million acres, affecting an estimated 25per cent of the cotton crop and have pushed the price of cotton to rocket up in recent weeks by more than 700 per cent” (Poulter S., September 14, 2010). What is more, as the different taxes rise and appear the price of cotton rise as well. Other thing which influencing the price of the cotton is increasing price of import. With regular increase of the price of fuel also the price of the transport will increase and it leads to increase of the price of the imported cotton. The diagram below shows that with the decrease in the supply and no change in demand price of the cotton will increase. 3. Other things that can influence price rising are maximum growth in the price of cotton, worldwide´s higher labor costs, transport costs, producing cost and rise in VAT. In the article “Fashion chains far from cheerful about future of cheap chic” from September 2010 on the website the Quardian is stated that the increase in the cotton price has its roots in the financial crisis of two years ago, when farmers stopped planting low-value cotton and switched to higher-value crops such as corn and soya. When retail sales picked up, demand for cotton also rose and prices shot up – just at a time when major cotton-producing regions such as China and Pakistan were...
Words: 1019 - Pages: 5
...Cost theory and estimationm’s cos: An individual firm cost of production has great influence on the total market supply of a particular commodity that is why it is important to understand the production cost concept. Different types of costs: Cost of production can be classified as Opportunity Cost Opportunity cost is a cost associated with a decision that includes both the explicit and implicit costs. The unique aspect of opportunity cost is that it also includes costs associated with making an alternate decision. The costs associated with an alternative are called implicit costs. The accounting cost of making a decision is called the explicit cost. While explicit, or accounting, costs are fairly easy to calculate, implicit costs are not as easy. Measuring the cost of the best foregone alternative can be not as easy as anticipated. By reading this Wiki right now, you are paying an implicit cost of your next best alternative. This can and often will be different for everyone. For you, it may be that the next best alternative instead of reading this is watching television. For someone else, it may be surfing the internet. IMPLICIT COST A cost that is represented by lost opportunity in the use of a company's own resources, excluding cash. These are intangible costs that are not easily accounted for. For example, the time and effort that an owner puts into the maintenance of thecompany|company rather than working on expansion. EXPLICIT COST A business expense that...
Words: 2760 - Pages: 12
...enrollments in order to increase the revenue. Most likely Nobody States University will not decline enrollment so the cost of tuition would definitely be increased. Under what conditions will revenue (a) rise, (b) fall, or (c) remain the same? Revenue would not fall or remain the same it would increase more likely due to the economic industry. Tuition have risen in the past and it has not stated the same or lowered while economic crisis continues to rise tuition cost would also increase. Explain this process, focusing on the relationship between the increased revenue from students enrolling at NSU despite the higher tuition and the lost revenue from possible lower enrollment. The tuition fees raises but, it is due to the economic of health care, other industry with a huge cost problem. Both college education and health care have raised sharply in most developed countries not only the United States. The government is the real reason why tuition is raised and it is to replace state revenues or other private revenue sources because state subsides are going down. The student has been rising steady for decades because once subsides get cut they never get reinstated which effects the proportion of the cost of college. There are other reasons that tuition cost rises is simply the ever increasing amounts of money being spend on administration rather than instruction. Administrators have many high profiles universities have no incentive to decrease cost they have an...
Words: 775 - Pages: 4
