Consider the market for rental apartments in the city of Ann Arbor. Hypothetical data on the market demand and market supply of rental apartments in Ann Arbor are provided in the accompanying table. Rent $2,000 $1,800 $1,600 the development of a black market in housing a decline in housing quality $1,400 $1,200 b. What are some potential consequences of such a price ceiling? a decline in housing availability housing discrimination Quantity demanded 5,000 8,000 11,000 14,000 17,000 a. Suppose that, to assist tenants, the government of Ann Arbor imposes a price ceiling (rent control) on apartments at $1,200 per unit. This would create a of units. Quantity supplied 13,000 12,000 11,000 10,000 9,000

Consider the market for rental apartments in the city of Ann Arbor. Hypothetical data on the market demand and market supply of rental apartments in Ann Arbor are provided in the accompanying table. Rent $2,000 $1,800 $1,600 the development of a black market in housing a decline in housing quality $1,400 $1,200 b. What are some potential consequences of such a price ceiling? a decline in housing availability housing discrimination Quantity demanded 5,000 8,000 11,000 14,000 17,000 a. Suppose that, to assist tenants, the government of Ann Arbor imposes a price ceiling (rent control) on apartments at $1,200 per unit. This would create a of units. Quantity supplied 13,000 12,000 11,000 10,000 9,000

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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