Consider the market for rental housing in Yourtown. The demand and supply schedules for rental housing are given in the table at right. a. In a competitive market for rental housing, the equilibrium price is $ units. and the equilibrium quantity is b. If a price ceiling is set at $800, what quantity will prevail in the market? c. Will there be a shortage, a surplus, or neither at that price? OA. shortage OB. surplus OC. neither d. If a price ceiling is set at $600, what quantity will prevail in the market? e. Will there be a shortage, a surplus, or neither at that price? A. surplus OB. neither OC. shortage units. units. Market for Rental Housing Quantity Demanded Price $1,000 $900 $800 $700 $600 $500 $400 60 70 80 90 100 110 120 Quantity Supplied 120 110 100 90 80 70 60
Consider the market for rental housing in Yourtown. The demand and supply schedules for rental housing are given in the table at right. a. In a competitive market for rental housing, the equilibrium price is $ units. and the equilibrium quantity is b. If a price ceiling is set at $800, what quantity will prevail in the market? c. Will there be a shortage, a surplus, or neither at that price? OA. shortage OB. surplus OC. neither d. If a price ceiling is set at $600, what quantity will prevail in the market? e. Will there be a shortage, a surplus, or neither at that price? A. surplus OB. neither OC. shortage units. units. Market for Rental Housing Quantity Demanded Price $1,000 $900 $800 $700 $600 $500 $400 60 70 80 90 100 110 120 Quantity Supplied 120 110 100 90 80 70 60
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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Transcribed Image Text:Consider the market for rental housing in Yourtown. The demand and supply schedules for rental housing are
given in the table at right.
a. In a competitive market for rental housing, the equilibrium price is $ and the equilibrium quantity is
units.
b. If a price ceiling is set at $800, what quantity will prevail in the market?
c. Will there be a shortage, a surplus, or neither at that price?
OA shortage
OB. surplus
OC. neither
d. If a price ceiling is set at $600, what quantity will prevail in the market?
e. Will there be a shortage, a surplus, or neither at that price?
OA. surplus
OB. neither
OC. shortage
units.
units.
Market for Rental Housing
Quantity
Demanded
Price
$1,000
$ 900
$ 800
$700
600
$
$
500
$ 400
60
70
80
90
100
110
120
Quantity
Supplied
120
110
100
90
80
70
60
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VIEWStep 5: d. Determine the quantity for price ceiling of $600
VIEWStep 6: e. Choose the correct option
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