Economic Analysis Perform an economic analysis of the consequences of the following scenario (this...

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Economic Analysis Perform an economic analysis of the consequences of the following scenario (this is a Fictitious Scenario, nevertheless relevant to contemporary policy discussions in Australia):“On the Island of ‘Experimentia’ the market for Tertiary Education has been highly regulated. The federal government of Experimentia wanted to keep the cost of education low, so a binding price ceiling was in effect. However, after a recent election on Experimentia, the Tertiary Education sector will be deregulated and prices will now be determined by the free market for tertiary education (i.e. The price ceiling will be removed).”Note:Nominal figures have not been given for this assessment. What is important is that you show the shifts in supply, demand and how price moves supply
	
Document Preview: Economic Analysis Perform an economic analysis of the consequences of the following scenario (this is a Fictitious Scenario, nevertheless relevant to contemporary policy discussions in Australia): “On the Island of ‘Experimentia’ the market for Tertiary Education has been highly regulated. The federal government of Experimentia wanted to keep the cost of education low, so a binding price ceiling was in effect. However, after a recent election on Experimentia, the Tertiary Education sector will be deregulated and prices will now be determined by the free market for tertiary education (i.e. The price ceiling will be removed).” Note:Nominal figures have not been given for this assessment. What is important is that you show the shifts in supply, demand and how price moves supply and demand to a new equilibrium. ? Begin by describing the market for tertiary education prior to these reforms in terms of supply, demand and prices. i.e. when the price ceiling was in effect. ? Describe the changes and the outcome of these reforms for the tertiary education market in terms of supply, demand and price. ? Compare the consequences of this deregulation under the assumption that the supply curve for tertiary education is elastic versus inelastic. ? Describe how this policy change will affect the efficiency of the tertiary education market ? Describe how this policy change will affect the equity of the tertiary education market Format: Simply follow the steps above. No abstract or additional introduction/conclusion required. The use of supply and demand graphs is highly encouraged. Length: 1000 words maximum, including references and footnotes/endnotes. Marks will be deducted for assignments over or under this length by 10%. Concise writing is an important skill to develop. Marking Criteria: ? Can demonstrate clearly the impact of a binding price ceiling on supply and demand within the market. ? Can trace the movement of market equilibrium ? Can compare...

David · Accepted Answer

Market for tertiary education prior to deregulation: 
 In the worldwide student marketplace colleges aim to create money, and the chief price 
restraint is what scholars in a worldwide market will recompense. The fees Australian colleges 
charge international scholars are similar to competitor campuses in nations such as the United 
Kingdom.  
Before the price ceiling, in Australia, it is not uncommon for the most costly college to 
charge twice or more the fee of the inexpensive university contribution the same course. This 
does not deter international students. In spite of the cost, in most corrections costly courses 
appeal more scholars than inexpensive courses. 
If price ceiling is usual overhead the current marketplace value, there is no straight effect. 
But then again, if price ceiling is set underneath the current marketplace price, the market 
experiences problematic of absence.
As we are able to see that supply curve shift to left as the price ceiling occurs on the service. 
So that, as per the above figure, there was quality education available in the country, 
however it was limited to the some of the colleges and universities, because price ceiling was 
bounded some of the institutions. So at that time demand was higher for education and quality 
education supply was lower before the de regulation of price ceiling. This was applicable to the 
international colleges as well as the domestic colleges, as they had limited number of resources due 
to the price ceiling of fees, to provide to the students. 
De regulation of price ceiling and its impacts: 
 De regulation of price ceiling in education territory, makes gates for the educational 
institutions and universities for the purchasing and using different types of quality resources to 
provide the students, however it was much costly than the before but its improve the supply of 
the quality education to the scholars,

Economic Analysis Perform an economic analysis of the consequences of the following scenario (this is a Fictitious Scenario , nevertheless relevant to contemporary policy discussions in Australia ):...

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