Tuition : A Common Debate Within An Organization Essays

933 Words Apr 12th, 2016 4 Pages
Tuition, Raise or Lower A common debate within an organization is revenue. Whether it be a price hike on an item or a service, it is something that is debated often. Many Universities each year commonly want to determine if it is plausible to raise tuition for quality educational services. When conversing about a surge in tuition, the concerns that come about are, affordability, institutional expenses, educational services, and other university goals. Nonetheless, what is evident is, will an increase in tuition have a negative or positive impact on future enrollment?
This paper examines the question stated and analyses the circumstances created by changing tuition prices and will it root the revenue to rise, fall, or remain the same. As a final point, a proposition to apply a tuition elasticity rate of -1.2, as recommended tuition increase to the board of Nobody State University for a slight revenue hike.
As has been noted, for many years the prices of universities have risen instead of being decreased. Economics would suggest that consumers would turn away and go for a more affordable option. Ronald Ehrenberg states in his book Tuition Rising, “Consumers are sensitive to prices and when the price of one thing increases relative to the price of other things, they tend to buy less of the first and more of the other. For example, when the price of apples goes up relative to the price of bananas, typically people will buy more bananas and fewer apples.”(Ehrenberg, R.…

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