However, the “supply,” or the amount of students colleges accept and can adequately accommodate, remains constant. Therefore, colleges could address this issue by increasing the population of accepted students and faculty members. Yet, the majority of universities wish to maintain their selective admission standards, and choose to rather to take another course of action. In terms of economics, when a product is limited in numbers but greatly wanted, the producer can increase the price in order to maximize profit from the reduced supply. Because the product is in demand, consumers are willing to pay more. The same principle applies to college costs: because supply has not increased but demand has, prices have risen.
Partially due to supply and demand, colleges and universities continue to spend large sums of funding on new dormitories, dining halls, classrooms and countless other improvements. These additions are constructed in order to compete with other campuses, lure prospective students, and provide sufficient facilities to those currently enrolled.
The reasons behind these rising costs are extremely complicated. However, the financial burden of these expenses can be lessened through various programs such as scholarships, Federal Student Aid and countless others. Perhaps one day soon, higher education will be a possibility for all, regardless of financial status.