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Analysis Of Higher Education

Decent Essays

For this assignment I will act like I have been recently hired by Nobody State University as a consultant to help the university to increase their total revenue. I already knew that the university has been struggling since the last couple of year I need to help them to find the right solution so the university can survive.

All the universities in USA has been affected of cutbacks in funding because of the recession in the country . This results that the universities needed to reduce their own spending and needed to find alternatives that would help sustain them. NSU is one of those universities that have been struggling to increase its revenues .
The first hing I would do as a president is to raise the tuition not much just a little …show more content…

A good rating would have an effect of encouraging more application of students into the institution. Another way would be an increase in the number of non-states students that would include international students, Having more of these students would help raise the revenues since they pay more.“The concept of elasticity of demand is also applicable to supply schedules and supply curves. Price elasticity of supply is the measure of the responsiveness of the quantity supplied to changes in the price” (Amacher & Pate, 2013). “Price elasticity of demand measures the responsiveness of demand to changes in price for a particular good. If the price elasticity of demand is equal to 0, demand is perfectly inelastic. Values that are between 0 and 1 indicate that demand is inelastic. When price elasticity of demand equals one, demand is unit elastic. Finally, if the value is greater than one, demand is perfectly elastic” (Investopedia, 2013).If true price elasticity were (-1.2), that would mean the price elasticity would be considered elastic; this means that the demand is sensitive to changes in prices.

As I was saying if I were the president of NSU my first attempt were to increase the tuition cost by 3% which is not much and that way it would not be too shocking for the students and it will help the revenue as well. This small increase would help me to know if it really affect the enrollment demand. As well depending the results I will

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