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Tution Fee at American Unversty of Sharjah - Essay Example

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ABSTRACT The research has been conducted in an American university in sharjah regarding the change in the tuition fees. The students of the university were approached and were asked about their comfort level in paying the fees of the university, if they are okay with the current fee structure or if they are looking for a decrease or if they are okay if the fee increases…
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Tution Fee at American Unversty of Sharjah
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Download file to see previous pages We wanted to understand the change in demand if there is an increase in the fee: how many students will still have a demand for it and how many students will not join. We also measured the elasticity of demand. We also wanted to find how the trends were among females and males, were they different or were they pretty much the same or they both were indifferent towards such changes. For this we have done an analytical research for which a questionnaire has been prepared consisting of 6 questions which are as follows: 1. Gender 2. Marital status 3. Living with family or away 4. Current tuition fees paid 5. Maximum fee they are willing to pay 6. Do they have scholarship, if yes then how much With this questionnaire we will assess the number of students who will join the college even if the fees increase. With this questionnaire we will be able to identify the demand among males and females and also amongst scholarship students. In the research we have hypothised that a small increase in the tuition fees of the students is not going to affect the students. This will help the people from the college authorities to understand the behavior of the students to the increase in the tuition fees. One of the main problems we might face is that there might be some errors which we might not be able to restrict. The interviewer might target some of the people whom he knows and not others whom he doesn’t know. On the part of the respondent they are affected by factors such as that when they know that they are being interviewed they might give a wrong answer. These things might affect our research but here such factors are assumed to be minimal and the information provided can be relied upon. THEORY AND IMPLICATIONS Demand and Supply analysis The demand and supply analysis is a powerful tool the can be applied to a wide variety of interesting problems. Such as: To understand how changing world economic conditions can affect market price and production or evaluating the impact of government price controls, minimum wages, price control, price support etc. Here we will be using the demand and supply analysis to determine demand and supply changes in case the tuition fees changes. Elasticity Of demand It may be defined as the percentage change in quantity demanded to the percentage change in price. EP =% change in quantity / Percentage change in price Consumer Surplus Consumer surplus is defined as the difference between the maximum price a consumer is willing to pay for a product and the price the consumer actually pays for the product. It is denoted by the area enclosed by the demand curve and the actual pay line. Here, consumer surplus can be seen as the number of students who would like to join the college after a hike in the tuition fee. Producer surplus Producer surplus is defined as the difference between the price at which the producer actually sells the product and the minimum price at which the producer is willing to sell the product. It is denoted by the area enclosed by the supply curve and the actual pay line. The graph showing the number of students okay with fees increase and students who wants a decrease shows the region under consumer surplus and producer surplus. Income effect Income Effect is the change observed in the consumption of quantity among two products (or group of products) with a change in the income of the consumer. The change is ...Download file to see next pages Read More
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