Knowing the Truth about Education by Wentland Daniel;

Author:Wentland, Daniel; [Wentland, Daniel]
Language: eng
Format: epub
Publisher: Rowman & Littlefield Publishers
Published: 2015-08-15T00:00:00+00:00

Figure 4.2. The Equilibrium Price Auction Model

A supply curve is a graph of a supply schedule. It shows how the quantity supplied will change as the price changes, holding all other determinants of supply constant during a specific period of time. A demand curve is a graph of a demand schedule. It illustrates how the quantity demanded will change as the price changes, holding all other determinants of demand constant during a specific period of time. The equilibrium price represents the price at which the quantity demanded by consumers equals the quantity supplied by suppliers.

The most effective way to achieve equilibrium price and quantity is through the free market where competition among producers leads to an equilibrium state. Competition forces producers to provide products at the price, and the level of quality, demanded by the consumer.

It is the notion of how competition drives optimal outcomes in the equilibrium price auction model that creates a desire for charter schools and other educational alternatives to the traditional school system. Although the equilibrium price model is the best model for understanding the economic activity of a society, it’s not the proper paradigm for understanding the educational process. The clarity that the equilibrium price auction model brings to the world of economics is lost in the educational arena. In the educational environment, reality is not about competition.

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