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38. The following appeared in the editorial section of a campus newspaper. Because occupancy rates for campus housing fell during the last academic year, so did housing revenues. To solve the problem, campus housing officials should reduce the number of available housing units, thereby increasing the occupancy rates. Also, to keep students from choosing to live off-campus, housing officials should lower the rents, thereby increasing demand. Discuss how well reasoned... etc. The author of this article argues that, to reverse declining revenues from campus housing rentals, campus housing officials should decrease the number of available housing units and reduce rent prices on the units. The authors line of reasoning is that fewer available units will limit supply while lower rents will increase demand, thereby improving overall occupancy rates, and that the resulting increase in occupancy rates will, in turn, boost revenues for the campus. This reasoning is unconvincing for several reasons. To begin with, the author assumes that boosting occupancy rates will improve revenues. All other factors remaining unchanged, this would be the case. However, the author proposes reducing both the supply of units and their rental prices. Both of these actions would tend to reduce revenues. The author provides no evidence that the revenue-enhancing effect of a higher occupancy rate will exceed the revenue-decreasing effect of reduced supply and price. Without such evidence, the argument is unconvincing. | 
