Rising Tides: Examining UCI's Tuition Surge Through the Prism of Econ 20A
The tuition fees at UCI have increased by 18.61%, and this rise can be attributed to the increase in the number of applicants. The surge in applicants has led to an increase in quantity demanded, thereby driving up tuition fees. This is a classic example of market supply and demand dynamics, where suppliers adjust prices in response to increased demand to achieve equilibrium. Therefore, we can conclude that the primary reason for the tuition fee hike at UCI is the heightened demand pressure faced by the university, with the tuition adjustment being a response to this reality.
Simultaneously, the GDP inflation rate in the United States has reached 15.33%, which is also a contributing factor to the tuition fee increase. Inflation impacts the entire economic system, including the education sector. Typically, inflation leads to increased costs and expenditures, and universities may face rising operational costs. Therefore, tuition fee adjustments may also be a measure to counteract the effects of inflation. Thus, besides the increase in the number of applicants, inflation is also a significant factor contributing to the rise in UCI's tuition fees.
Because my income comes from China, when China's inflation is much lower than that of the United States, the gap between the real value of the Chinese Yuan compared to the US dollar will become increasingly larger. Therefore, as an international student from China, the real value of the tuition fee I have to pay is higher than the nominal value shown on the table.