A local university decides to double its enrollment over the next five years in order to increase tuition revenue. Which of the following would most likely occur in the market for rental housing in the surrounding community?
A) a decrease in the price of rental housing
B) an increase in the demand for rental housing
C) a decrease in the supply of rental housing
D) a population change leads to a change in quantity demanded, not demand

Question

Quizplus · Accepted Answer

With an increase in enrollment, there will be an increase in demand for rental housing as more students will need a place to live. This increase in demand may lead to higher rental prices in the short run, but in the long run, it may incentivize landlords to build more rental housing, which could eventually increase the supply and lower prices. Overall, the most likely immediate effect would be an increase in demand.

A Local University Decides to Double Its Enrollment Over the Next