Read the excerpt from the article “ATAR cut-offs to soar without more uni places to meet surging demand” from the Age, 17 June 2020 Use the demand/supply model to answer the questions below: (a) What does the article describe as the main changes to demand for and supply of university enrolments? (b) How would you predict these changes would affect the equilibrium price and quantity of domestic education? Does the article confirm your prediction? (c) Why are ATAR cut-offs predicted to increase? (d) Can you think of a solution to accommodate the change in domestic students’ demand? ATAR cut-offs to soar without more uni places to meet surging demand” from the Age, 17 June 2020 Australian Tertiary Admission Rank cut-offs for popular university courses are expected to soar next year unless surging demand from domestic students is met with an increase in places. Amid a weak job market and fewer traineeships due to the COVID-driven recession, universities warn students turned away from education face a lifetime of diminished prospects and want the government to increase funding for domestic students so they can offer more spots. Almost twice as many year 12 students have applied for university compared with this time last year, NSW figures show, and a likely fall in the number of students deferring their studies to spend a year working or travelling will also add to demand. Kim Paino, head of marketing and engagement at the Universities Admissions Centre, said stronger demand would not affect students' own ATAR but could push up entry cut-offs for popular degrees with limited numbers unless extra places were created. However, "the bottom line is if the government is prepared only to fund so many domestic undergraduate places ... you can't teach students free of charge". While border restrictions are likely to cut numbers of full fee-paying international students next year, those places cannot automatically be filled by local students because domestic enrolments are subsidised by the Commonwealth. Domestic students are not allowed to pay full fees
Read the excerpt from the article “ATAR cut-offs to soar without more uni places to meet surging demand” from the Age, 17 June 2020 Use the demand/supply model to answer the questions below:
(a) What does the article describe as the main changes to demand for and supply of university enrolments?
(b) How would you predict these changes would affect the
(c) Why are ATAR cut-offs predicted to increase?
(d) Can you think of a solution to accommodate the change in domestic students’ demand?
ATAR cut-offs to soar without more uni places to meet surging demand” from the Age, 17 June 2020 Australian Tertiary Admission Rank cut-offs for popular university courses are expected to soar next year unless surging demand from domestic students is met with an increase in places. Amid a weak job market and fewer traineeships due to the COVID-driven recession, universities warn students turned away from education face a lifetime of diminished prospects and want the government to increase funding for domestic students so they can offer more spots. Almost twice as many year 12 students have applied for university compared with this time last year, NSW figures show, and a likely fall in the number of students deferring their studies to spend a year working or travelling will also add to demand. Kim Paino, head of marketing and engagement at the Universities Admissions Centre, said stronger demand would not affect students' own ATAR but could push up entry cut-offs for popular degrees with limited numbers unless extra places were created. However, "the bottom line is if the government is prepared only to fund so many domestic undergraduate places ... you can't teach students free of charge". While border restrictions are likely to cut numbers of full fee-paying international students next year, those places cannot automatically be filled by local students because domestic enrolments are subsidised by the Commonwealth. Domestic students are not allowed to pay full fees.
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