ECO204_Week2_Assignment - Running Head: TUTITION Raise or...

ECO204_Week2_Assignment
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Running Head: TUTITION Raise or Lower Tuition? Johnnisha Burton ECO 204 Principles of Microeconomics Nicholas Bergan May 27, 2013
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Raise or Lower Tuition? It seems that many would think that by raising tuition it would in turn have a positive effect on tuition, and in a way it does and it also falls short. The main reason tuition is raised is to potentially increase revenue for the school. This would work if there was not a decrease in funding through the state, this means that from the start they are working with an even lower budget then that of the previous year. The state of our economy plays a role in the amount that would be efficient enough to at least maintain operations. Any additional revenue that is generated through higher tuition is only to make up the difference of money that was lost that the government was once providing (Marklein, 2008). In reviewing this information it was clear that more revenue was not looking like a reality and higher impact would impact enrollment which in turn decreases revenue. So increasing tuition needs to be determined carefully to not negatively
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