Raise or Lower Tuition

Raise or Lower Tuition

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ECO 204 Principles of Microeconomics

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Raise or Lower Tuition

Universities, Junior Colleges and even private schools are constantly evaluating the tuition pricing in relation to the cost of quality education services being offered. Administrators and Presidents of the schools face the increasingly critical decision of analyzing and considering the schools goals. Cost of tuition not only is a factor in enrollment of students but also provides a major revenue source to the school. All the schools must answer one major question and that is “What effect will raising or lowering the school’s tuition have on the total earned revenue? This will investigate this question and review what the conditions in change of tuition will cause a rise, fall or remaining the same on the revenue.

If we look back in history we notice that tuition prices have always risen and not decreased. It seems that no matter how much the tuition prices have increased the number of applicants has risen and continues to do so. According to Meagan Pant in her article in the Springfield News-Sun “The majority of Americans think college is too expensive for most people to afford – although the widely held opinion has not hindered skyrocketing enrollment or stopped virtually all parents from expecting their child go to college, new research shows.” (Pant, M (2012) Pant also states that “college enrollment is up thirty percent” (Pant, M (2012) Today with everyone living on a tighter budget the administrators at the schools must consider if the trend is going to keep going. In the Journal of Higher Education there was an article written by Glenn Bryan and Thomas Whipple. They stated “Establishing tuition rates at institutions of higher learning is always a fundamental strategic importance to college administrators who are suffering adverse financial effects from reduced allocations from external sources and increased...