Under which condition(s) does an increase in the total inventory of space produce a decrease in the short-run equilibrium occupancy rate? How does your answer relate to the sensitivities of Dq and Dy, i.c. to the slopes of the demand curves? (Hint: you need to compute Solution The change in the occupancy rate with respect to the total stock of space can be found as follows: dq ds ds S - Q S2 1 [dQ Q1 slds %3D slds 1 q + s

College Algebra
1st Edition
ISBN:9781938168383
Author:Jay Abramson
Publisher:Jay Abramson
Chapter3: Functions
Section3.3: Rates Of Change And Behavior Of Graphs
Problem 1SE: Can the average rate of change of a function be constant?
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4. Under which condition(s) does an increase in the total inventory of space produce a decrease in the
short-run equilibrium occupancy rate? How does your answer relate to the sensitivities of D, and
Dy, i.e. to the slopes of the demand curves? (Hint: you need to compute ·
ds
Solution
The change in the occupancy rate with respect to the total stock of space can be found as follows:
dq_ d
ds
ds
()s - Q
S2
Q
1 [dQ Q1
slds
= -
1 [dQ
slas
-
1
b
s lB + b
Transcribed Image Text:4. Under which condition(s) does an increase in the total inventory of space produce a decrease in the short-run equilibrium occupancy rate? How does your answer relate to the sensitivities of D, and Dy, i.e. to the slopes of the demand curves? (Hint: you need to compute · ds Solution The change in the occupancy rate with respect to the total stock of space can be found as follows: dq_ d ds ds ()s - Q S2 Q 1 [dQ Q1 slds = - 1 [dQ slas - 1 b s lB + b
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