Increase Tuition = Acquire Oxygen
“Welcome to Canada”, said by our beloved UBC.
Is that really a warm welcome when UBC increases students’ tuition by 10%?
The University of Building Construction (UBC), poured a lot of money into improving public facilities such as the new SUB (which is still under construction) to ensure a quality environment for students on campus.
Cash flow within a company is like oxygen present in the atmosphere, companies only need the right amount to operate successfully. In this case, money is flying out of the UBC’s pocket at an accelerating speed, and UBC needs to take action to secure the amount of oxygen circulating in their system.
UBC certainly did its market research very well and understood that a degree from a highly ranked university is considered a necessity in today’s global market. A necessity has inelastic demand thus according to elastic demand theory, profit increases when there is an increase in the price of an inelastic demand.
This time, UBC increased tuition fees for international students for the incoming class of 2015, but even with an increase in price, the amount of international students in UBC’s target market would not fluctuate due to UBC’s high ranking and global reputation.
If students don’t step up and take action against it now, will there be an increase in tuition fees for enrolling domestic students later on as well?
Works Cited:
“BREAKING: UBC to Increase International Tuition by 10% and Residence Fees by 20%.” The Talon. Web. 11 Nov. 2014. <http://thetalon.ca/breaking-ubc-to-increase-international-tuition-by-10-and-residence-fees-by-20/>.
“Your Tuition: The Full Picture.” Explore Student Services. Web. 11 Nov. 2014. <http://students.ubc.ca/enrolment/finances/tuition/tuition-proposal>.