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Online Education

Online Education. Interest in virtual education is rising Schools offer individualized learning and a flexible schedule Enrollment continuing to increase. Charter Schools. Online schools become more popular The price of online schools, a substitute for charter schools, falls

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Online Education

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  1. Online Education

  2. Interest in virtual education is rising • Schools offer individualized learning and a flexible schedule • Enrollment continuing to increase

  3. Charter Schools • Online schools become more popular • The price of online schools, a substitute for charter schools, falls • Demand for charter schools decreases • Positive cross elasticity of demand Price (hundreds of dollars per student) 15 10 Cross Elasticity of Demand: -5 percent/ -10 percent= 0.5 5 D0 D1 Quantity (thousands of students) 2 4 6

  4. Online Schools • As the price of online schools declines, the quantity demanded increases • There is a movement along the demand curve for online schools Price (hundreds of dollars per student) 15 1 10 2 D1 5 D0 2 4 6 Quantity (thousands of students)

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