Tuition and fees for four year colleges in the United States have risen over five percent per year recently. One cause for the increase in price has been an increase in demand for college education. In the standard model, what could be a possible explanation for the increase in the demand for college education?
A) More colleges have been established
B) The cost of two-year colleges has declined over the same period
C) Income in the United States has risen
D) The price of all other goods in the economy has risen 3 percent over the same period

Question

Quizplus · Accepted Answer

An increase in income generally leads to an increase in demand for normal goods, such as college education, as people have more disposable income to spend on education.

Tuition and Fees for Four Year Colleges in the United