Suppose that the demand and supply schedules for rental apartments in the city of Gotham are as given in the table below. Monthly Rent Apartments Demanded Apartments Supplied $2,750 10,000 15,000 2,250 12,500 12,500 1,750 15,000 10,000 1,250 17,500 7,500 750 20,000 5,000 Instructions: Enter your answers as whole numbers. a. What is the market equilibrium rental price per month and the market equilibrium number of apartments demanded and supplied? Market equilibrium rental price is: Market equilibrium quantity is: b. If the local government can enforce a rent-control law that sets the maximum monthly rent at $1,750, will there be a surplus or a shortage? Of how many units? How many units will actually be rented each month? c. Suppose that a new government is elected that wants to keep out the poor. It declares that the minimum rent that can be charged is $2,750 per month. If the government can enforce that price floor, will there be a surplus or a shortage? Of how many units? How many units will actually be rented each month?
Suppose that the
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Instructions: Enter your answers as whole numbers.
a. What is the market
Market equilibrium rental price is:
Market
b. If the local government can enforce a rent-control law that sets the maximum monthly rent at $1,750, will there be a surplus or a shortage?
Of how many units?
How many units will actually be rented each month?
c. Suppose that a new government is elected that wants to keep out the poor. It declares that the minimum rent that can be charged is $2,750 per month. If the government can enforce that
Of how many units?
How many units will actually be rented each month?
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