Monthly rent Quantity demanded Quantity supplied $600 800 140 $650 650 210 $700 500 280 $750 350 350 $800 200 420 What is the market price without rent control? $ How many one-bedroom apartments will be rented after the rent control law is passed?
Monthly rent Quantity demanded Quantity supplied $600 800 140 $650 650 210 $700 500 280 $750 350 350 $800 200 420 What is the market price without rent control? $ How many one-bedroom apartments will be rented after the rent control law is passed?
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
Related questions
Question
Monthly rent |
Quantity demanded |
Quantity supplied |
|---|---|---|
| $600 | 800 | 140 |
| $650 | 650 | 210 |
| $700 | 500 | 280 |
| $750 | 350 | 350 |
| $800 | 200 | 420 |
What is the market
How many one-bedroom apartments will be rented after the rent control law is passed?
Expert Solution
Step 1
What is the market price without rent control?
Answer:
Market price without rent control is equilibrium price where demand equal supply
Quantity Demanded = Quantity Supplied = 350
At Eqilibrium quantity, the market price without rent control is $750
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