It seems that a lot of businesses, if they see demand for their product exceed supply, are grateful and use the oppurtunity to expand operations to meet the demand, and make more money.
Why don’t universities do the same? There are many universities with abysmal acceptance rates, in that many many more people want to attend than the school is able to educate. Why don’t those schools accept those students and use their tuition dollars (along with per capita government funding if it is a public university) to build additional buildings and hire more teachers?
"Our widgets are hot. So many people want one that stores are running out within the day of receving a shipment. We need to build more manufacturing plants, run the existing plants for more hours, and hire a lot of new factory workers. We’re on the road to success and we’ll double our profit if demand continues. Market research indicates that widgets will continue to be in demand for years at the level we’re seeing. Get cranking.
"Our school is hot. So many people want in that we can only accept 5% of applicants. We don’t really have a vision of being a great or powerful school, so let’s end this meeting and go watch our football team get creamed again.