Demand and Supply for Education

DEMAND FOR EDUCATION

Educational needs and aspirations of a population measured in monetary terms constitute demand.

Demand is also associated with the capacity to pay for the expected services. A person willing to pay for a good or service is said to make an 'EFFECTIVE DEMAND'.

The demand for education is further divided into:-

1) PRIVATE DEMAND:- If the educational needs and aspirations are felt, experienced and expressed by parents, their wards or consumers in general, then it is known as Private Demand.

# DETERMINANTS

A) Gender

B) Regional Disparity

C) Linkages with Employment

D) Unemployment Rate

E) Waiting time for employment

F) Non- Monetary Benefits

G) Ability to Pay

2) SOCIAL DEMAND:- If the educational needs and aspirations of a population measured in monetary terms are felt, experienced and expressed by a state, or an organised establishment of society, then it is known as Social Demand.

#DETERMINANTS

A) Equity

B) Economies of Scale

C) Externalities

D) Excellence

SUPPLY OF EDUCATION

The supply of education can be viewed both in physical as well as in financial terms. 

Establishment of adequate number or type of educational facilities which is conveniently accessible to all sections of the society relates to the PHYSICAL DIMENSION OF SUPPLY.

The resources needed for the establishment of such a supply, measured in terms of money, constitutes the FINANCIAL DIMENSION OF SUPPLY.

 The four major factors which are important in respect of the supply considerations of education are:-     EFFICIENCY, QUALITY, EQUITY and REGIONAL PARITY.