Question

A small private college increases tuition while a large public university in the same state does not. What will happen to the demand (enrollment) for both schools? Identify which one is a change in demand and which would be a change in quantity demanded.

Answer 1

First , we have to note the point that, a large public university always gets to fill in seats and however with the increase in tution in a small private college, people are more bound to enroll in public university and therefore the demand for the public university increases on the whole. However, the private univeristy has more seats and sme seats will be left t as well. However with the increase in tution, the quantity of enrollment decreases which implies that the enrollment reduces on the whole.