In 1990 the annual cost of a college education (tuition) was $2,530 and 7.4 million students were enrolled in college. By 2008, there had been increases in the cost of equipping and maintaining modern classrooms, laboratories, and libraries as well as increases in faculty salaries. At the same time, a larger and larger percentage of a growing number of high school graduates decided that a college education was essential. The net result of all these changes was that by 1998, the annual cost of a college education had increased to $4,573 and the number of students enrolled increased to 12.3 million.

Carefully explain any changes in demand and supply conditions between 1990 and 2008. Use a supply and demand diagram to illustrate the changes in the market for a college education between 1990 and 2008. Be sure to label all curves and points appropriately.