Supply and demand is not driving the price of Harvard. As you point out, there are many more people willing to pay the current price than are admitted. This ind

Supply and demand is not driving the price of Harvard. As you point out, there are many more people willing to pay the current price than are admitted. This indicates that the market price is much higher than the current price. In other words, supply and demand factors would allow Harvard to raise prices substantially if they chose to, and something other than supply and demand is determining where within the range of zero and the equilibrium price the price is set. I don't have a strong opinion as to whether administrative costs are the driving factor, but it's certainly much more plausible than supply and demand.