College Education and The Economy Essay Example | Topics and Well Written Essays - 500 words

College Education and The Economy - Essay ExampleHowever, this case shows a situation where the submit of college upbringing does not decrease despite the drastic increase in the charge fees.As mentioned, the increase in tuition fee is expected to discourage the shoot for college education for virtually people in the economy. This would portray a free market economy where prices determine the crave. However, the students in involve of education have various expectations about their future scotch status and career prospects. Consequently, the students observe their education based on prospective future gain in labor and wages. This is considered as the future economic rewards to education (Samuelson & Marks, 2012). Therefore, its demand increases influencing the enrollment in various colleges across the country. As a result, the increase in the price of college education over the last 30 years in the U.S has not affected the demand for the education from the high school gradua tes and nationwide college enrollments.The U.S government does not abide its citizens education directly. Instead, it provides its support through the provision of loans and grants to the students over the period of four years for a standard degree course. aft(prenominal) the completion of the college education, the former students are required to repay the loans extended to them at a given subsidised interest rate. As a result, the U.S government does not have control over the patters of change in the college tuition fee.The first graph shows the price of college education against the quantity provided, Q1. The supply of education has remained constant with stripped-down improvements in the existing educational institutions. Therefore, the supply curve is represented by S. the demand curve, D1 shows the present demand for college education. The need for education from the numerous high school graduates has increased its demand. This is indicated by a shift of the demand curve t o the right from D1 to D2. Since the