Below is the market information for rental housing in an urban market: Demand P₁ = $4000 P₂ = $2000 Q₁ = 0 Q₂ = 40 Supply P₁ = $3000 P₂ = $1000 Q₁ = 60 Q₂ = 20 a. Construct the graph for the market of rental housing based on this data. b. Set a price ceiling at $1000.00 per unit of rental housing and describe the results.
Below is the market information for rental housing in an urban market: Demand P₁ = $4000 P₂ = $2000 Q₁ = 0 Q₂ = 40 Supply P₁ = $3000 P₂ = $1000 Q₁ = 60 Q₂ = 20 a. Construct the graph for the market of rental housing based on this data. b. Set a price ceiling at $1000.00 per unit of rental housing and describe the results.
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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![2. Below is the market information for rental housing in an urban market:
Demand
P₁ = $4000
Q = 0
P₂ = $2000 Q = 40
Supply
Q. = 60
P. = $3000
P, = $1000
Q, = 20
a. Construct the graph for the market of rental housing based on this data.
b. Set a price ceiling at $1000.00 per unit of rental housing and describe the results.
3. Below are the equations for the quantity demanded and quantity supplied for a given market. Using the
equations please find the equilibrium price quantity. Remember, at equilibrium Q, - 2-
40 - 4P = Q |
10+ 6P = Q](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F2f45bebc-2afe-45cc-8e28-eea88d146913%2F6cd2fbb1-35dc-4a87-897f-81bec3ff77ef%2Fzxmbp5e_processed.jpeg&w=3840&q=75)
Transcribed Image Text:2. Below is the market information for rental housing in an urban market:
Demand
P₁ = $4000
Q = 0
P₂ = $2000 Q = 40
Supply
Q. = 60
P. = $3000
P, = $1000
Q, = 20
a. Construct the graph for the market of rental housing based on this data.
b. Set a price ceiling at $1000.00 per unit of rental housing and describe the results.
3. Below are the equations for the quantity demanded and quantity supplied for a given market. Using the
equations please find the equilibrium price quantity. Remember, at equilibrium Q, - 2-
40 - 4P = Q |
10+ 6P = Q
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