This blog contains posts and comments written by students in Dr. Tufte's economics classes at Southern Utah University.
11/30/2005
Tuition Increases
Tuition increases are something you have come to expect as a college student. At Youngstown University they are going on their ninth straight year. Could you say that this is because of a growing economy? Demand for education? Or is someone out to make a few bucks? At this point I’m not sure. Sometimes I can see that the arguments made by school administrations are legitimate, but there are many things, even about SUU that just don’t seem right. On our Labor day holiday earlier this month it was a beautiful day and I went to play tennis, however the tennis courts were locked? Why? I pay my student fees and expect to be able to play. Are all these additional fees worth it? One thing we can be grateful for is that we get a quality education here at SUU and the price is very reasonable compared to other schools, however no one likes to hear that they will have to pay more.
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3 comments:
Don't be astounded by tuition hikes.
This is what happens when you have a third-party payer system. Students are the first party, state schools are the second party, and taxpayers are the third party.
It starts with states pricing education too low. This causes quantity demanded to go up. Universities respond with higher costs because marginal costs do rise with quantity. Legislators agree to the tuition increases because they're spending someone else's money.
Dr. Tufte said that low education prices causes the quantity demanded to go up. I think it also should be added that universities have an inelastic demand. Prices have gone up but quantity is still going up. It is very difficult to get a good job without an education, so just to compete with others, it seems that students need to get bachelor degrees to stay even and master degrees to differentiate!
Tee hee hee.
Degrees seem to be inelastic: that's why everyone wants one.
Education is very elastic: that's why you're probably not reading this from your Harvard dorm room.
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