今日內快d econ 問題

2008-11-14 1:31 am
in recant years, there has been a drastic decrease in demand for education
because of the lower birth rate. Explain how this decrease in demand affects
resource allocation in education.
可以的話 答埋中文 plz...

回答 (1)

2008-11-14 1:51 am
✔ 最佳答案
Let me try:
Assume the education market is at equilibrium at the beginning.
Owing to the lower birth rate, there is a decrease in demand for education. Supply for education is fixed in short-run. That's means surplus of education supply. Quantity demand and price for education would be droped. In other words, education organization is running at lose since the operating expenses of those orgranization are fixed in short-run (ie. income < expenses).

In long-run, supply of education would be adjusted (ie. reduce) until reaching a new equilibrium point where the education organization could break-even. At the final stage, the quantity supply would be less than the short-term equilibrum point and the price would be adjusted up. That's means decrease of resource allocation in education would be expected.


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