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Over the last 30 years in the United States, the real price (adjusting for inflation) of a college education has increased by almost 80 percent. Over the same period, nationwide college enrollments have almost doubled. While faculty salaries have barely kept pace with inflation, administrative staffing, expenditures, and capital costs have increased significantly. In addition, government support to universities (particularly research funding) has been cut. In your response, provide a thorough explanation to each discussion question and prompt.
-College enrollments increased at the same time that average tuition rose dramatically. Does this contradict the law of downward-sloping demand?
-Use supply and demand curves (or shifts therein) to explain the dramatic rise in the price of a college education.
-What market does the college education industry operate within? Why?
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