Demand and supply of education, Microeconomics

Demand and Supply of Education

Educational needs and aspirations of a population measured in monetary terms constitute demand. If these needs and aspirations are felt, experienced and expressed by parents, their wards or consumers in general, then it is known as ‘private demand’. If the needs and aspirations for education are felt, experienced and expressed by a state, or an organised establishment of society, then it is known as ‘social demand’. Demand is also associated with the capacity to pay for the expected services.

A person willing to pay for a good or service is said to make an ‘effective demand’. In this sense, a wish is not a demand. While ‘needs’ are of current interest/relevance, ‘demand’ relates to the future needs estimated as required over a period of time. Technical know-how and skills needed for meeting the future needs constitute the ‘social demand’ for manpower. Private and social demand for education may be divergent. The state may want all its people to be literate and may be willing to spend for this. But illiterate population may not realise the benefits of education.

The experience of last five decades shows that all parents do not send their children to schools. This is particularly true in rural areas even though the government has opened schools in many such areas. In such a situation, the state strives to achieve higher enrolment in schools by adopting both motivative and coercive policies. While provision of mid-day meals, supply of free books/uniforms, etc. come under the former, the latter includes implementing laws on ‘compulsory schooling’. The supply of education can be viewed both in physical as well as in financial terms. Establishment of adequate number/type of educational facilities which is conveniently accessible to all sections of the society relates to the physical dimension of supply. The resources needed for the establishment of such a supply, measured in terms of money, constitutes the financial dimension of supply.

Posted Date: 12/17/2012 3:10:40 AM | Location : United States

Related Discussions:- Demand and supply of education, Assignment Help, Ask Question on Demand and supply of education, Get Answer, Expert's Help, Demand and supply of education Discussions

Write discussion on Demand and supply of education
Your posts are moderated
Related Questions
Problem 1: How can a manager of a supermarket maximise total revenue using various concepts of elasticity of demand? Use examples to illustrate. Problem 2: What are the

Comparative Advantage:A theory of international trade which originated with David Ricardo in early 19th Century and is maintained (in revised form) within neoclassical economics. T

1. Go to the website for MarginalRevolution. Find"> Find two posts that related to microeconomic topics that we are covering and write about on

THEORY OF CONSUMER SURPLUS: We discuss the basic concept of consumer surplus and its derivation. A consumer normally pays less for a commodity than the maximum amount that she

Clearly explain the distinction between supply, demand and equilibrium price.

What does the basic neoclassical, or traditional, model of economics assume about markets? It supposes that markets are perfectly competitive and smoothly functioning, and thos

Diversification  - Assume that a firm has a choice of selling air conditioners, heaters, or both of them. - The probability of it being hot or cold is 5%. - The firm woul

cartels model of collusive oligopoly

Public Expenditure Trends: The expenditure pattern of the Government sector has been generally guided by the concern about the role of the State in the economy, both as invest

Organic biochemistry is really as well as biochemistry. This is because the as well as atom is the central source of all existing creature's substances. 8 protons and 8 electro