Now we will consider the changes in problems 1 and 2 simultaneously. Consider the market for apartments for rent in Minneapolis. a. Graph the initial supply and demand curves and the equilibrium before any changes. Label the initial equilibrium (Q* and P*) Now suppose people's tastes have changed toward living in suburbs outside of Minneapolis AND many condominium owners start renting out their condos (the condo owners are turning their condos into apartments for rent). b. Determine if there is a change. If there is a change in demand and/or supply, state the direction of the change and show it on the graph you drew in part a. c. Note the new equilibrium Q' and P' on the graph and state how equilibrium price and quantity have changed. State whether each of the changes in Q* and P* is definitive or ambiguous.

Now we will consider the changes in problems 1 and 2 simultaneously. Consider the market for apartments for rent in Minneapolis. a. Graph the initial supply and demand curves and the equilibrium before any changes. Label the initial equilibrium (Q* and P) Now suppose people's tastes have changed toward living in suburbs outside of Minneapolis AND many condominium owners start renting out their condos (the condo owners are turning their condos into apartments for rent). b. Determine if there is a change. If there is a change in demand and/or supply, state the direction of the change and show it on the graph you drew in part a. c. Note the new equilibrium Q' and P' on the graph and state how equilibrium price and quantity have changed. State whether each of the changes in Q and P* is definitive or ambiguous.

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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