Answer to Question #146513 in Microeconomics for Sara

Question

Describe the elasticity of supply for micro-credentials. What effect does this have on price and
quantity as demand for the micro-credentials increase? What about its effect on university
education?

Answer 1

Micro-credentials are short online courses that are industry related, employees pursue to improve their professional growth.

Because of the growth of online courses and colleges that offer online certificates, the supply of micron credentials is elastic. The increase in the demand in micro-credentials will result in an increase in both price and quantity demanded.

Micro credentials are a complement to university education. They do not affect demand of university education, but an increase in the demand for university education increases the demanders for micro-credentials.

Thus, micro-credentials are elastic in supply due to existence of a large number of online courses providers.

The increase in demand increases both price and quantity demanded. Demand for online credentials has no direct effect to university education.