Answer to Question #95453 in Microeconomics for Deep

Question

1. At Alexander College, the tuition fee for the domestic (Canadian) students is $285.00 per credit for the University Transfer and Associate Degree courses, while the tuition fee for the international students is $550.00 per credit (https://alexandercollege.ca/admissions-and-registration/tuition-fees-and-refunds/#1). Yet most students at the college are the international students. Explain why. For your explanation,

a. Draw the demand (for the courses at AC) and supply diagrams for two markets, (1) domestic students and (2) international students, that show the difference.

b. Explain, in words, WHY the demand (or supply) is greater in one market than in the other.

Answer 1

a. The demand for the courses at AC for domestic students is lower then for international students, and the supply is the same in both markets.

b. The demand is greater for international students because AC is more attractive than in their native countries, the price for courses may be lower in AC, education in Canada is more popular, the number of international students is higher etc.