The paper "How the Cost of College Went from Affordable to Sky-High by Sanchez" is an outstanding example of a macro & microeconomic article. Higher education tuition fees skyrocketed in recent years in America. For example, in the past five years, Arizona State has experienced an increase of 77%, Georgia 75%, and Washington 70%. The increasing trend has been similar across the other states. This increase is not expected to lower in the near future. The citizens, however, realize that Education is very important and they are willing to go the extra mile to raise the fees required for themselves and their dependents.
This is despite the fact that the rate of unemployment is high; people have not had an increase in their wages. Clearly, a college education is not for the wealthy anymore as it was in the past. Increased demand could have caused an increase in the price of higher education. Borrowing to pay for college education took off especially since public investment in higher education went down. Therefore, colleges have to spend more money to replace some of the lost funding from the state.
Some institutions took advantage of the situation to charge high fees to meet the public perception that high tuition means quality education. Parents are becoming more aware and informed consumers and are seeking other colleges like community colleges, which are not as expensive as the mainstream colleges. Introduction Globally, the increasing price of higher education has caused many people to express their concerns. In America, college fees are growing at a faster rate than the cost of housing, consumer product prices, and wages. Therefore, American families have been finding it hard to be able to pay for a college education. Source: (The Economist 2010) There are several microeconomic factors driving this rise in tuition fees.
This analysis seeks to use a demand and supply framework to bring out the forces that are behind the increase in the price of college tuition. It will also explain the rise of tuition fees over the consumer price index. This analysis will also present other factors in the economy driving the increase (Christine 2012).
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