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Unformatted text preview: offcampus housing. Moreover, even if demand increases by lowering rents, revenues will not necessarily increase as a result. Other factors, such as maintenance and other costs of providing campus housing units and the reduced supply of rental units might contribute to a net decrease in revenue. Thirdly, in asserting that lowering rental rates will increase demand, the author assumes that current rental rates are causing low demand. However, low demand for student housing could be a function of other factors. For instance, the student housing units may be old and poorly maintained. Perhaps students find the campus housing rules oppressive, and therefore prefer to live offcampus; or perhaps enrollments are down generally, affecting campus housing occupancy. In conclusion, the author of this editorial has not argued effectively for a decrease in the number of available campus housing units and a reduction in rental rates for those units. To strengthen the argument, the author must show that a rent reduction will actually increase demand, and that the revenue enhancing effect of greater demand will outweigh the revenuereducing effect of a smaller supply and of lower rental rates. 39. The following appeared in an Avia Airlines departmental memorandum. “On average, 9 out of every 1,000 passengers who traveled o...
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- Spring '09