Question

(a) use demand and supply analysis to explain the impact of the increased emphasis placed on private tuition by asian parents on the private tuition market

Answer 1

EMPHASIS OF PRIVATE TUTORING BY USING SUPPLY AND DEMAND CURVE

A graphical frame work based on the theory of Demand and supply curve of the Private tutoring is explained above,

S1 = public education. So = private education

S2 = Public education with private tutoring

S1 and S2 share a common upward sloping part ending at point A. S1 includes the vertical from point A, while S2 includes a dashed diagonal line starting from point A. It is possible to think that dashed line as the supply curve for the private tutoring alone.

The rationale for the vertical part of S1 is that regardless of consumer demand, after a certain point public schools reach their capacity limit, preventing them from the offering a as much education in terms of both quality and quantity, as parents and students want. ( that is supply becomes perfectly inelastic).

The dashed portion of the supply curve S2 is flatter than the vertical part of S1, indicating the ability of the private tutoring to meet the demand for the education where the public education system cannot. This portion of S2 is steeper than the lower part of S1, Reflecting the assumption that even public school is not free. Private tutoring usually costs the house holds more than public school does.

House hold demand for education is represented by Demand curve D1 (low demand ) and D2 ( high demand ). D2 represents the higher income people compared to D1.

The amount of education the household consumes is represented by the amount the horizontal axis corresponding to the point where the supply and demand curves meet.

Q2 represents the amount of the public education consumed by households and Q*2 represents private education consumed by the same house holds who consumed the public education.The consumed amount of education is lower at Qo.

IMPACTS OF THE PRIVATE EDUCATION

1) Consumers could be poorly informed about the returns. Even econometricians find it difficult to tease out the returns of the tutoring.

2) Consumers may not be sovereign, Parents who pay for tutoring may have objectives other than improving their children’s learning and productivity

3) Students may view tutoring as consumption rather than investment.

Students academic performance can be improved with private tutoring, but these improvements can be cost effective.

The tutoring can raise educational outcomes as a complement to formal school systems. Private tutoring may place poorer house holds at some disadvantage relative to richer households, particularly when corruption distorts the tutoring market.