Consider the following issues in the context of materials presented in chapters 3 and 4 (i.e. Demand and supply, and Elasticity).
In the recent Australian budget the coalition Government has announced deregulation of the higher education sector with a view to make the sector globally competitive. The deregulation will result in the allocation of Commonwealth supported undergraduate places not only to the university sector but also to TAFEs and private providers from 2016. The deregulation will also allow the Australian universities and other providers of higher education to set their own fees. In the context on this development you are asked to answer following questions.
Discuss the impact of deregulation on:
(a) Demand for undergraduate courses offered by the Australian universities. Use demand curve to show the impact. Also, discuss if the impact will be the same in all universities regardless of their location (such as regional vs urban).
(b) Based on your answer in part (a) discuss what will happen, in the short-term, if the aggregate supply of undergraduate places (offered by the university sector) does not change
GET ANSWERS / LIVE CHAT