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by bix6 251 days ago
If I’ve learned one thing from studying economics it’s that supply equals demand.

If I’ve learned another it’s that prices never go down

1 comments

Can you explain in this context? Because prices do go down if supply exceed demand.
The economics concept behind this is "price stickiness".

https://www.tutor2u.net/economics/reference/what-is-price-st...

Education is weird as a product, because you're delivering the same experience to students but they each pay a different bespoke price. Sometimes schools even pay their own customers!

When a rich person sends their kid to school they get charged full sticker price. Then schools use some of that money to subsidize the educations of the other students. Given those dynamics, there's really no reason for the tuition sticker price to ever go down unless the uber-rich can't afford it anymore, because the actual price anyone pays is floating and can be whatever it needs to be for them.

The students also get wildly different outcomes based on the choices they make. And it’s not always clear what the right choices are.

You can drift, you can work hard, you can work hard on the wrong thing, you can gain work experience, meet your future colleagues and life-partners.

Theoretically yes but not when everything has perfect pricing as seems to be the case these days.