Explain in words and illustrate with graphs.

If the mar Show more In recent generations the demand for undergraduate diplomas has consistently increased. If the market were perfectly competitive how would market conditions have responded to the increased demand? Explain in words and illustrate with graphs. For simplicity assume that the costs of educating students havent changed over time. What factors make the market for undergraduate educations not perfectly competitive? Focus on the ways in which the models assumptions are violated in reality. How do the violated assumptions help prevent the outcome described in (a)? Now assuming that demand has remained constant suppose that technological advances have decreased schools costs of educating students. In words and with a graph show the effect that this cost decrease would have in a perfectly competitive market. In words briefly explain how the factors that you list in (b) prevent this outcome from occurring. Show less

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Approximately 250 words