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Factors Affecting the Demand in Education

Market forces
Socioeconomic Status

Parental Education
Cultural Attitudes

Demand Factors



Demand factors is not only important for the business or economical world, but it is also
important aspect, when comes to education industry as well. There are a lot of factor which
affecting the demand in education. The above diagram shows the factors affecting the demand in
First factor which affecting the demand of education is socioeconomic status. Wealthy or
rich people understand the economic benefit of education. Therefore it becomes a valued
resource and a symbol of status, but those who are not wealthy enough not really look at the
education as an important aspect. Wealthy people value the education as a status or standard for
them to increase their standard of living.
Second factor is Market forces. Market forces is another important aspect when comes to
education because after the study, students always want them as a marketable graduate. So to
make sure that, they will always look for the programme which is demand. For example if the
technological forces demand more skilled labor, more people will seek out higher education.
Third factors is Parental education. Most of the uneducated parents are not really value
the important of education, because they think that without education also people can earn
money and survive in this world. So if the parents are educated, they will definitely encourage
their children for the higher education and form there the demand for the education will be
Fourth factor is Cultural attitudes. Few ethnicity from different countries are not really
encourage girls to pursue their education. The reason because they afraid of their safety and also
they dont feel that girls are really need higher education. Girls from this type of culture will get


married at early age like 16 to 19 years old. Cultural attitudes also can be considered as a culture
that values the intrinsic nature of education.
Fifth factor is policy. Government policy is another motivational tools for the people to
get their higher education. For instance, if government introduce a policy which all the
government staff must possess bachelor degree as a minimum qualification by giving them the
increment. So that many people will pursue their study and this will eventually increase the
demand in education.
Last but not least is the availability factors. If educational opportunities are available to a
society, a certain segment of that society will take at advantage of opportunities presented to
them. For example like building a college at rural area, definitely more people from that
surrounding area will enroll in that college.


Factors Affecting the Supply in Education

State of Technology
Price of Fees

Government Policy
Government Policy


Goals / Objectives of
Educational Institutes
Goals / Objectives of Ministry
of Education
Languages Employment


Among the factors that influence the supply of education are:

1. Price of Education fees:
The most important factor in determining the supply of education is fee. As a general
rule, the price increases, the quantity supplied is given as well as rise and vice versa. It is because
at a higher price, there is a greater opportunity for profit. It led to all higher education institutions
and schools to offer more to the course in the market.

2. State of Technology:
Technological changes that affect the area has to offer. Advanced technology and better
reduce the cost of production, which raises profit margins. Studies Institute will offer many
course related to the changes in technology, in order to meet current needs.

3. Government Policy (Country Technology):

Government policy is also playing a role in the changes in the supply of education. For
example, earlier that Malaysia has to be declared as a national industry, then moved on
agriculture, and now speeds to developed countries emphasize technology and innovation.
Therefore, more and more universities, whether private or government, offers a relevant course
of technology and innovation.


4. Goals / Objectives educational institutes:

In general, the supply increased only at a higher price because it meets the objective of
maximizing profit educational institution itself. However, with the changing trend, some
companies are willing to provide more even at those prices that do not maximize their profits.
Their objective is to capture a wider market and to enhance the status and prestige.

5. Goals / Objectives of the Ministry of Education:

In addition, factors that influence the supply of education is where the ministry offers
areas and specific subjects that are needed to meet the needs of the country. Consequently, it can
reduce unemployment among graduates in Malaysia soon

6. Languages - Employment Opportunities

Finally, the high demand for supply work in the English language, causing the focus is
very bruised and weight in all schools and learning institutions in Malaysia. Right now, a lot of
job opportunities in dire need of a person skilled in the English language as the country moves
towards the development of the developed countries, in line with economic growth and
international relations between all countries in the world.


Conclusion, supply and demand studied independently of each other, even though both
are interrelated then at the point of equilibrium.