Introduction:
According to Amacher & Pate, “An important factor in determining price elasticity of demand is the number of substitutes a good or service has” (Amacher & Pate 2013). After doing my research about NSU, it is my belief that a raise in tuition will not necessarily result in more revenue for NSU.
Discussion:
NSU is looking for someone such as myself to help increase the revenue for their school. Schools like NSU has seen many battles between helping a student get an education or failing to do so because of the government raising taxes on tuition or lowering tuition. It is hurting thousands of students who are attending here and it is my duty to help find different ways to increase the tuition instead of decreasing it for students that cannot pay out of pocket expenses. The purpose of this paper is to find other ways to improve the increase in revenue and answer the following questions that NSU wants me to help resolve this issue:
1. Assess a raise in tuition and if it will necessarily result in more revenue.
2. Describe the conditions under which revenue will (a.) rise, (b.) fall, or (c.) remain the same.
3. Explain the process of revenue at NSU, focusing on the relationship between the increased revenue from students enrolling at NSU despite the higher tuition and the lost revenue from possible lower enrollment.
4. If the true price elasticity were (-1.2), discuss what you would suggest the university do to expand revenue.
5. Using what you have learned in this course, explain how you would resolve this problem if you were the President of NSU.
Assess a raise in tuition and if it will necessarily result in more revenue.
There have been a lot of issues about the raises in tuition and if the school has to collect more revenue from the tuition that the students have, then it could become a major problem with the school or other schools like it that donates in order to keep the tuition steady (neither rising nor falling). If the tuition is an access for students who qualify then the ones that doesn’t receive anything then it wouldn’t be the same. The important thing here is that we need to find a way to increase the revenue in order to make sure that the students who are passing and the low income families to have a better education. The state policy is to recommend compensation between colleges. As stated by Shin, “Since the 1970’s, state policymakers and college administrators have struggled to find a means to compensate the discrepancy between college expenditures and college revenues.” (Jung Cheol Shin, June 2008).
Describe the conditions under which will (a.) rise, (b.) fall, or (c.) remain the same.
It is my belief that under all of the conditions, it will do one of the following: continue to rise, fall, or remain the same because of the policies and the cost-related tuition rates. The revenue that NSU offers is sufficient for students to follow. If the revenue goes up, then it would be an access to all of the students on campus that are making at or above average grades. If the revenue decreases, then a lot of students will be without an education because they would have to seek employment in order to pay off student loans or pay for their required textbooks that the school does not cover. If the tuition remains the same, then all students would have access to stipends, book vouchers, or money to purchase whatever school-related necessities that they may need to assist in their education. NSU implies that all students make a 2.0 average or above to receive their stipend refunds. The revenue will rise if the schools follow the rules and go by the policies in the handbook. One good way for us to keep the revenue afloat is to keep students in school and help others who can’t afford to go to school. For example: “This great disparity in college expenditures for different college majors has brought attention to
