AS Paper 1, June 2017Introduction to Markets and Market Failure
AS Paper 1, June 2017, Q5(a)
Explain why reducing the tuition fee cap may result in excess demand for university places.
Short answerExplain3 marks
Context
Universities UK raised concerns about the proposal to reduce the maximum tuition fees (fee cap) for undergraduate courses in England from £9 000 to £6 000. It stated “This unfunded proposal to reduce the fee cap would damage the quality of experience our universities could deliver to students and remove opportunities for those seeking to benefit from a university education”.