Apartments Supplied Monthly Apartments Rent Demanded $2,500 10,000 15,000 2,000 12,500 12,500 1,500 15,000 10,000 1,000 17,500 7,500 500 20,000 5,000
Suppose that the demand and supply schedules for rental apartments in the city of Gotham are as given in the following table. a. What is the market
the market equilibrium number of apartments demanded and supplied?
b. If the local government can enforce a rent-control law that sets the maximum monthly rent at $1,500, will there be a surplus or a shortage? Of how many units? And how many units will actually be rented each month?
c. Suppose that a new government is elected that wants to keep out the poor. It declares that the minimum rent that can be charged is $2,500 per month. If the government can enforce that
d. Suppose that the government wishes to decrease the market equilibrium monthly rent by increasing the supply of housing. Assuming that demand remains unchanged, byhow 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 $1,500 per month? To $1,000 per month? To $500 per month?
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