A Local University Decides to Double Its Enrollment Over the Nextfive

question 8

Multiple Choice

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?

• A)a decrease in the price of rental housing
• B)an increase in the demand for rental housing (True Answer )Correct
• C)a decrease in the supply of rental housing
• D)a population change leads to a change in quantity demanded, not demand

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Definitions:

Government Regulation

The laws and rules put in place by the government to control the way businesses can operate, often with the aim of protecting consumers, workers, and the environment.

Herfindahl-Hirschman Index

A measure of the size of firms in relation to the industry and an indicator of the amount of competition among them.

Monopoly

A market structure characterized by a single seller or producer offering a unique product or service with no close substitutes.

Oligopoly

A market structure characterized by a small number of firms dominating the market, leading to limited competition and potentially higher prices.