Economics Assignment

Running Head: Economics

Assignment

 [Name of Writer]

[Name of Institution]

[Date]

Q2 (a) What is the meaning of “demand driven”?

Ans: The economic states that a demand driven market is where the elasticity of demand is more than elasticity of supply. In simple words it is described as what the consumers really want. In terms of Victorian bachelor of commerce market the

2(b) what is the number of suppliers in this market and how do they determine pricing?

Ans: The number of suppliers is many in Australian Market in Victoria such as Deakin University and University of Victoria etc. The prices are determined by the consensus build by education sector in determine the price range for prospective students.

2© What is the current government subsidy given to providers for each student?

Ans: The current government subsidy is paid towards the course cost is to be reduced and ensuring the maximum amount for prospective students from universities. The result will help students in delaying payment of the contribution due to Higher Education Loan Program. The income repayment shall reach and is estimated to reach $50,638 till 2016. (Studyassist.gov.au, 2014)

2(d) what changes to government involvement in this market have been proposed by the Commonwealth Government in its budget for 2014/15?

Ans: The Australian Government has made information public for students such as domestic and international ones. The government is keen to introduce a number of changes in education policy to improve education at the highest level. The amendments shall open more choice for all the concerned stakeholders and will allow them to pursue education at any place and at any institute. The exercise of giving more power and practicing creativity and innovation by the given institutions will provide better support to help students acquire skills for both the global and local labor markets.

The following changes that will most likely have an impact on the concerned stakeholders such as students

1. Changes to student contribution amounts and the subsidy provided by the government
2. Support for searching more different degrees ranging from associate to post-graduate programs.
3. Support for the all concerned stakeholder i.e. Student from the all the institutions.
4. The reforms that will affect the repayment of HELP loans.

The most crucial part of all this reform is to measure how much all students will be affected by the current changes. The changes made in the market made by government is the under Commonwealth Scheme for students fees will be lowered by 20% to provide sustainable practice of higher education. The Commonwealth government of Australia is keen to ensure there is affordable and robust higher education system in place. The process means to re-balance the amount of costs paid by the state and the students. The given method will lead to more benefits and rewards that students will get from the higher education in the form of higher salary employment chances and more job opportunities accessibility. The students have the space to make a delayed payment of their tuition fee through HELP. The students who have enrolled in certain program have given consent to Commonwealth Supported place on and before 13 May 2014.The given enrolled students will be charged the same amount due to the given scenario until the 2020.