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 necessitate of college study does not decrease despite the drastic increase in the tuition fees.As mentioned, the increase in tuition fee is expected to reject the demand for college education for most people in the economy. This would portray a free market economy where prices determine the demand. However, the students in need of education abide various expectations about their future economic status and career prospects. Consequently, the students observe their education based on prospective future gain in advertise 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 graduates a nd nationwide college enrollments.The U.S government does not have a bun in the oven 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. After the completion of the college education, the former(prenominal) students are required to repay the loans extended to them at a given subsidized interest rate. As a result, the U.S government does not have soften 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 minimal improvements in the alive 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 cur ve to the right from D1 to D2. Since the