In the graph below we model the long-term rental market (i.e. contract of 6 months or more), assuming it is perfectly competitive. Let's try to model the impact that short-term rental platforms might have on this market. To do so, let's compare a market without such platform (before) and a market after the platforms have been introduced. In the figures, the vertical axis r is the price, while Q is the quantity of rental accommodation. Which figure best represents the introduction of short-term rental platforms? a) top-left b) top-right c) bottom-left d) bottom-right Their effect is to cause a)   an increase b) a decrease or c) neither an increase nor a decrease in rental prices? and a) an increase b) a decrease or c) neither an increase nor a decrease in rental accommodation?

ENGR.ECONOMIC ANALYSIS
14th Edition
ISBN:9780190931919
Author:NEWNAN
Publisher:NEWNAN
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
icon
Related questions
Question

In the graph below we model the long-term rental market (i.e. contract of 6 months or more), assuming it is perfectly competitive. Let's try to model the impact that short-term rental platforms might have on this market. To do so, let's compare a market without such platform (before) and a market after the platforms have been introduced. In the figures, the vertical axis r is the price, while Q is the quantity of rental accommodation.

Which figure best represents the introduction of short-term rental platforms?

a) top-left

b) top-right

c) bottom-left

d) bottom-right

Their effect is to cause a)   an increase b) a decrease or c) neither an increase nor a decrease in rental prices?
and a) an increase b) a decrease or c) neither an increase nor a decrease in rental accommodation?

 

Rental Market
Rental Market
Rental Market
Rental Market
‒‒‒‒
Before Airbnb
After Airbnb
Transcribed Image Text:Rental Market Rental Market Rental Market Rental Market ‒‒‒‒ Before Airbnb After Airbnb
Expert Solution
trending now

Trending now

This is a popular solution!

steps

Step by step

Solved in 3 steps

Blurred answer
Knowledge Booster
Monopoly
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, economics and related others by exploring similar questions and additional content below.
Similar questions
  • SEE MORE QUESTIONS
Recommended textbooks for you
ENGR.ECONOMIC ANALYSIS
ENGR.ECONOMIC ANALYSIS
Economics
ISBN:
9780190931919
Author:
NEWNAN
Publisher:
Oxford University Press
Principles of Economics (12th Edition)
Principles of Economics (12th Edition)
Economics
ISBN:
9780134078779
Author:
Karl E. Case, Ray C. Fair, Sharon E. Oster
Publisher:
PEARSON
Engineering Economy (17th Edition)
Engineering Economy (17th Edition)
Economics
ISBN:
9780134870069
Author:
William G. Sullivan, Elin M. Wicks, C. Patrick Koelling
Publisher:
PEARSON
Principles of Economics (MindTap Course List)
Principles of Economics (MindTap Course List)
Economics
ISBN:
9781305585126
Author:
N. Gregory Mankiw
Publisher:
Cengage Learning
Managerial Economics: A Problem Solving Approach
Managerial Economics: A Problem Solving Approach
Economics
ISBN:
9781337106665
Author:
Luke M. Froeb, Brian T. McCann, Michael R. Ward, Mike Shor
Publisher:
Cengage Learning
Managerial Economics & Business Strategy (Mcgraw-…
Managerial Economics & Business Strategy (Mcgraw-…
Economics
ISBN:
9781259290619
Author:
Michael Baye, Jeff Prince
Publisher:
McGraw-Hill Education