Essay on Demands and Supplies in Education and Government

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Our world is energized with constant demand and supplies. Education is no exception. Government demands that children in a specific age group should have school exposure. To this end, the public schools offer subsidies to increase the 'supply' of students (i.e. to attract more students into education). However, the same application of subsidy to private schools does not yield practical intended results as private school education is mostly by choice and does not come under the direct impact of demand and supply, as we will see it. The argument that government should eliminate subsidies to the private schools, is therefore, reasonable. We will discuss why. Theorize What is Demand? In simple terms, "want" is the desire for goods and…show more content…
Our world is energized with constant demand and supplies. Education is no exception. Government demands that children in a specific age group should have school exposure. To this end, the public schools offer subsidies to increase the 'supply' of students (i.e. to attract more students into education). However, the same application of subsidy to private schools does not yield practical intended results as private school education is mostly by choice and does not come under the direct impact of demand and supply, as we will see it. The argument that government should eliminate subsidies to the private schools, is therefore, reasonable. We will discuss why. Theorize What is Demand? In simple terms, "want" is the desire for goods and service, while "demand" is the want satisfying power of a commodity backed by income. Thus, it implies:  A ‘desire’ to acquire a product/service  ‘Willingness’ to pay for the product/service  Ability to pay for the product/service The law of demand states that when the price of a good rises, the amount demanded falls, and when the price falls, the amount demanded rises (Henderson, The Concise Encyclopedia of Economics). A demand schedule is a table of the quantity demanded of a good at different price levels. Thus, given the price level, it is easy to determine the expected quantity demanded (Investopedia). Below is a hypothetical table showcasing the varied demand for coffee beans at different market prices. It shows a rise in demand

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