I wonder if this is where the government gets the idea that raising the price on something such as cigarettes and booze will reduce its demand…
There has been a 10% drop in the number of people from England applying to study in the UK when higher fees start, figures show.
The university admissions service, Ucas, says 46,413 fewer students from England have applied than at the same time last year.
The government said people still saw university as a good investment.
The UCU academics’ union said the figures highlighted the recklessness of raising fees to £9,000.
Anyone wishing to apply after 30 June will have to do so through clearing.
The reduction in applications has remained steady for the past few months, according to admissions service, Ucas.
But these latest figures come a few weeks before the final deadline for regular applications to university. The main deadline passed in mid-January.
It is true that by raising the price above a certain level you can reduce the demand, private companies will often do their level best to find the ideal market price to maximise demand and profits. Competition helps too, when there are similar products on the market from competing companies then those who can keep their own costs down will reap the benefit of higher sales. It all depends on the market you’re aiming at though, certain goods despite their high price will still sell as there is a demand for luxury products too, it all depends on what you’re aiming for.
By charging extra for education though the government have successfully reduced the demand for it, at least in England anyway. To many young people starting off in life with massive debts hanging over their heads is pretty much a non starter anyway, particularly in a recession with no realistic chance of a job when they finish. Yet unlike the market for booze and cigarettes where there is a viable and successful black market, the education ‘market’ in the UK is closed, particularly to the English who get charged fees no matter where they choose to go, unlike the Scots and Welsh in their own countries. So in a closed market price control works, or at least appears too with education costs for students.
I suppose it’s a shame no-one has yet come up with a way to emulate a black market in examinations and lectures, seems like we need one.