Discuss if the following statements are True or False. Justify your answer in each case. • The enrollment at Spectacular University unexpectedly declines. Hence, apartment owners in Spectacular City will face higher vacancy rates and might raise their rents to compensate. • Cosmetic surgery is more expensive in Sydney than in Brisbane. However, the quantity demanded by Sydney-siders is higher than the quantity demanded by Brisbanites. This constitutes a clear evidence that our simple S&D model does not apply to the market of cosmetic surgery. • If we observe that fewer cars are being purchased this year than last year, then we definitively should expect the price of cars to fall.
Question
Discuss if the following statements are True or False. Justify your answer in each case.
• The enrollment at Spectacular University unexpectedly declines. Hence, apartment owners in Spectacular City will face higher vacancy rates and might raise their rents to compensate.
• Cosmetic surgery is more expensive in Sydney than in Brisbane. However, the quantity demanded by Sydney-siders is higher than the quantity demanded by Brisbanites. This constitutes a clear evidence that our simple S&D model does not apply to the market of cosmetic surgery.
• If we observe that fewer cars are being purchased this year than last year, then we definitively should expect the
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