Cost of Higher Education

Ok class, let's talk economics. When consumers have more money to pursue a good, the demand of that good will increase. The shift of the demand curve to the right will result in.....a price increase (in ceteris paribus).

News today of the doubling of Pell Grants, among other goodies dispensed from Washington. If you want to look for one of the culprits in the rise of college costs, look no further than the fact that our government continues to pour money out to subsidize higher education.