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
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Chapter1: Making Economics Decisions
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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
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