You are looking for a new apartment in Manhattan.Your income is $4,000 per month, and you know thatyou should not spend more than 25 percent of yourincome on rent. You have come across the followinglisting for one-bedroom apartments on craigslist.You are indifferent about location, and transportation costs are the same to each neighborhood. [LO 1.1]Chelsea $1,200Battery Park 2,200Delancey 950Midtown 1,500a. Which apartments fall within your budget?(Check all that apply.)b. Suppose that you adhere to the 25 percentguideline but also receive a $1,000 cost-of-livingsupplement since you are living and workingin Manhattan. Which apartments fall withinyour budget now?
You are looking for a new apartment in Manhattan.Your income is $4,000 per month, and you know thatyou should not spend more than 25 percent of yourincome on rent. You have come across the followinglisting for one-bedroom apartments on craigslist.You are indifferent about location, and transportation costs are the same to each neighborhood. [LO 1.1]Chelsea $1,200Battery Park 2,200Delancey 950Midtown 1,500a. Which apartments fall within your budget?(Check all that apply.)b. Suppose that you adhere to the 25 percentguideline but also receive a $1,000 cost-of-livingsupplement since you are living and workingin Manhattan. Which apartments fall withinyour budget now?
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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Question
You are looking for a new apartment in Manhattan.
Your income is $4,000 per month, and you know that
you should not spend more than 25 percent of your
income on rent. You have come across the following
listing for one-bedroom apartments on craigslist.
You are indifferent about location, and transportation costs are the same to each neighborhood. [LO 1.1]
Chelsea $1,200
Battery Park 2,200
Delancey 950
Midtown 1,500
a. Which apartments fall within your budget?
(Check all that apply.)
b. Suppose that you adhere to the 25 percent
guideline but also receive a $1,000 cost-of-living
supplement since you are living and working
in Manhattan. Which apartments fall within
your budget now?
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