Blog Post #2: Demand and Supply

College is a business where you give time and money in exchange for knowledge.  As a business college is affected by the laws of supply and demand, where demand is represented by the amount of students desiring to attend a specific college.  Based on the demand a college sees they will either have to give greater or less incentives,  what the student gets from attending a specific college is the supply.

The way that supply and demand interact depends on the amount of students desiring to attend college.  If the demand is low there will need to be a greater amount of incentives offered by the college such as scholarships, financial aid, or other resources to increase the demand for attendance. If there is already a high demand there won't need to be any incentives to attract desire.

https://docs.google.com/document/d/1__EdlqER0R3yOoemTxKUZ3z9obfroWdXco339eVw4oM/edit
The graph shows how a raise in demand (d.1) can allow a college to reduce its supply (s.1) improving  its marginal analysis.  E and E.1 represent equilibrium which in this case correlate with the tuition which is a large decision maker for students choosing where to attend college.

The cost of college has been trending upward for years, with a higher demand of attending college there has been controversy regarding the addition of price controls on the cost of college.  Some say it is crucial in keeping a diversity of social class in higher education while some say that the government shouldn't interfere with the economy.

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