a shortage? Shortage Of how many units? 5000 apartments per month. How many units will actually be rented each month? 12500 apartments will be rented. c. Suppose that a new government wants to keep out the poor. It declares that the minimum allowable rent is $3,250 per month. If the government can enforce that price floor, will there be a surplus or a shortage? Surplus ☑ Of how many units? 5000 apartments per month. How many units will actually be rented each month? 12500 apartments will be rented. d. Start at the original (correct) equilibrium price and quantity in part (a). Suppose that the government wishes to decrease the market equilibrium monthly rent by increasing the supply of housing. Assuming that demand remains unchanged, by how many units of housing would the government have to increase the supply of housing in order to get the market equilibrium rental price to fall to $2,250 per month? To $1,750 per month? To $1,250 per month? Fall to $2,250 per month: 5000 units. Fall to $1,750 per month: 10000 units. Fall to $1,250 per month: 20000 units.
a shortage? Shortage Of how many units? 5000 apartments per month. How many units will actually be rented each month? 12500 apartments will be rented. c. Suppose that a new government wants to keep out the poor. It declares that the minimum allowable rent is $3,250 per month. If the government can enforce that price floor, will there be a surplus or a shortage? Surplus ☑ Of how many units? 5000 apartments per month. How many units will actually be rented each month? 12500 apartments will be rented. d. Start at the original (correct) equilibrium price and quantity in part (a). Suppose that the government wishes to decrease the market equilibrium monthly rent by increasing the supply of housing. Assuming that demand remains unchanged, by how many units of housing would the government have to increase the supply of housing in order to get the market equilibrium rental price to fall to $2,250 per month? To $1,750 per month? To $1,250 per month? Fall to $2,250 per month: 5000 units. Fall to $1,750 per month: 10000 units. Fall to $1,250 per month: 20000 units.
Microeconomics: Private and Public Choice (MindTap Course List)
16th Edition
ISBN:9781305506893
Author:James D. Gwartney, Richard L. Stroup, Russell S. Sobel, David A. Macpherson
Publisher:James D. Gwartney, Richard L. Stroup, Russell S. Sobel, David A. Macpherson
Chapter4: Demand And Supply: Applications And Extensions
Section: Chapter Questions
Problem 3CQ
Related questions
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Transcribed Image Text:a shortage?
Shortage
Of how many units?
5000 apartments per month.
How many units will actually be rented each month?
12500 apartments will be rented.
c. Suppose that a new government wants to keep out the poor. It declares that the minimum allowable rent is $3,250 per month. If the
government can enforce that price floor, will there be a surplus or a shortage?
Surplus
☑
Of how many units?
5000 apartments per month.
How many units will actually be rented each month?
12500 apartments will be rented.
d. Start at the original (correct) equilibrium price and quantity in part (a). Suppose that the government wishes to decrease the market
equilibrium monthly rent by increasing the supply of housing. Assuming that demand remains unchanged, by how many units of
housing would the government have to increase the supply of housing in order to get the market equilibrium rental price to fall to
$2,250 per month? To $1,750 per month? To $1,250 per month?
Fall to $2,250 per month:
5000 units.
Fall to $1,750 per month:
10000 units.
Fall to $1,250 per month:
20000 units.
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