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Is the following statement true? Explain. "The rapid increase in college tuition will lower the demand for college."

Be careful with your terms here...  An increase in college tuition can not decrease the DEMAND for college.  A decrease in demand has to be shown by a shift in the demand curve.  What an increase in tuition will do is lower the QUANTITY DEMANDED (not trying to shout, but want to emphasize).  In other words, there will be movement along an existing demand curve.  (The link I've posted talks more about the difference between demand and quantity demanded.)

In order for there to be an actual change in demand for spots in college, something other than the price of college has to change.

So: yes -- fewer people will go to college (all other things being equal) but this is NOT a change in demand.

As per principles of economics, increase in supply it self has no impact on demand. The demand is dependent on the price. Therefore, if rapid increase in college tuition, also leads to decrease in price of education due to more intense competition, the demand for college.

It appears quite unlikely that increase in colleges by themselves will increase the price of college education. Therefore, it is incorrect to say that rapid increase in college tuition will lower the total demand for college. All that may happen is that the the total demand expressed as a proportion of total supply may decrease.

In my opinion, unless there are concrete facts to support such a statement, it is merely someone's opinion.  And while we are expressing opinions here, I will conjecture to say that if someone wants to go to college bad enough, the cost of tuition won't be a deterrent to him.  He'll find alternative methods of funding such as scholarships, grants, and internships.

There are still jobs out there that require you to have a Bachelor's, Master's, or Doctorate Degree to get hired; therefore, the demand for college will still be there just as strong as before. 

Again, as I've said before, without evidence to support my statement, it is just my own opinion.

Interesting question. College tuition has risen dramatically in the past thirty years or forty years, but college enrollment has risen dramatically right along with it. A cause-effect relationship doesn't seem to be in play there at all. As an aside, I'll mention that in my community there is a state university and a state community college. Tuition has increased significantly at both of these schools, but the enrollment this fall at both schools is higher than ever.