A local university decides to double its enrollment over the nextfive years in order to increase tuition revenue. Which of thefollowing would most likely occur in the market for rentalhousing in the surrounding community?

Question

Quizplus · Accepted Answer

With a doubling of enrollment, there will be an increase in demand for rental housing in the surrounding community as more students will need housing. This increased demand could potentially lead to an increase in rental prices instead of a decrease, especially if the supply of rental housing does not increase at the same rate. A population change can lead to a change in both demand and quantity demanded, but in this case, it is specifically an increase in demand due to the increase in enrollment.

A Local University Decides to Double Its Enrollment Over the Nextfive