Micro Economics For Today
10th Edition
ISBN: 9781337613064
Author: Tucker, Irvin B.
Publisher: Cengage,
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Chapter 4, Problem 14SQ
To determine
The impact of a new huge apartment complex in the nearby town on the rental houses.
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Suppose that the demand and supply schedules for rental apartments in the city of Gotham are as given in the following table.
Monthly Rent
Apartments Demanded
Apartments Supplied
$ 2,500
10,000
15,000
$ 2,000
12,500
12,500
$ 1,500
15,000
10,000
$ 1,000
17,500
7,500
$ 500
20,000
5,000
a. What is the market equilibrium rental price per month and the market equilibrium number of apartments demanded and supplied?
Market equilibrium rental price = $
Market equilibrium quantity = apartments
I have no idea how to solve this problem
Suppose that the demand for rental apartments in Washington, DC, is represented by the following equation, where P is the monthly rent. QD = 10,000 – 2PThe supply of rental apartments is represented by the following equation: QS = 2,000 + 3PThe equilibrium rent is a) $ , and the equilibrium quantity is b) $ .
Part 2 (1 point)
Suppose the city council passes an ordinance placing a price ceiling of $1,200 on apartment rentals. How much of a shortage will this lead to? apartments
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…
Chapter 4 Solutions
Micro Economics For Today
Ch. 4.2 - Prob. 1YTECh. 4.2 - Prob. 2YTECh. 4.2 - Prob. 3YTECh. 4.2 - Prob. 4YTECh. 4.3 - Prob. 1YTECh. 4.3 - Prob. 2YTECh. 4 - Prob. 1SQPCh. 4 - Prob. 2SQPCh. 4 - Prob. 3SQPCh. 4 - Prob. 4SQP
Ch. 4 - Prob. 5SQPCh. 4 - Prob. 6SQPCh. 4 - Prob. 7SQPCh. 4 - Prob. 8SQPCh. 4 - Prob. 9SQPCh. 4 - Prob. 10SQPCh. 4 - Prob. 1SQCh. 4 - Prob. 2SQCh. 4 - Prob. 3SQCh. 4 - Prob. 4SQCh. 4 - Prob. 5SQCh. 4 - Prob. 6SQCh. 4 - Prob. 7SQCh. 4 - Prob. 8SQCh. 4 - Prob. 9SQCh. 4 - Prob. 10SQCh. 4 - Prob. 11SQCh. 4 - Prob. 12SQCh. 4 - Prob. 13SQCh. 4 - Prob. 14SQCh. 4 - Prob. 15SQCh. 4 - Prob. 16SQCh. 4 - Prob. 17SQCh. 4 - Prob. 18SQCh. 4 - Prob. 19SQCh. 4 - Prob. 20SQ
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Similar questions
- Suppose that the demand and supply schedules for rental apartments in the city of Gotham are as given in the following table. Apartments Demanded Apartments Supplied 15,000 12,500 10,000 7,500 5,000 Monthly Rent $2,500 2,000 10,000 12,500 15,000 1,500 1,000 500 17,500 20,000 Instructions: Enter your answers as a whole number. a. What is the market equilibrium rental price per month and the market equilibrium number of apartments demanded and supplied? Market equilibrium rental price = $ Market equilibrium quantity = apartments b. If the local government can enforce a rent-control law that sets the maximum monthly rent at $1,500, will there be a surplus or a shortage? (Click to select) ♥ Of how many units? apartments per month How many units will actually be rented each month? apartments c. Suppose that a new government is elected that wants to keep out the poor. It declares that the minimum rent that landlords can charge is $2,500 per month. If the government can enforce that price…arrow_forwardNew York City has a long-standing policy of controlling rents in certain parts of the city—in essence,a price ceiling on rent. Is the market for apartmentslikely to be efficient or inefficient? What does thisimply for the size of total surplus?arrow_forwardAssume the market for one bedroom apartments in a large city has the following demand and supply functions, where R is the monthly rent in dollars and Q is the number of one bedroom apartments: Demand: R = 700 – Q Supply: R = 100 + 2Q The government imposes a rent ceiling of $400 per month Draw a graph of the market. Be sure to fully and clearly label the graph, including: the Supply and Demand curves (as D and S respectively), Equilibrium Quantity (Q*), Equilibrium Price (R*), Rent Ceiling (Rc), Quantity Demanded with the Rent Ceiling (Qdc) and Quantity Supplied with the rent ceiling (Qsc).arrow_forward
- Find the equilibrium price and quantity for a product that has the following supply and demand curves, where p is the price in 100's of dollars and q is quantities in 1,000's of units demand: 1/3q + 1/3p - 4=0 Supply: q-p-2=0 If the product is currently priced at $400, what is the quantity supplied and the quantity demanded? Is there a surplus (More supplied than demanded) or a shortage (More demanded than supplied)arrow_forwardSome cities impose rent control laws, which are price controls or limits on the price of rental accommodations (apartments, houses, and mobile homes). New York City alone had over two million rent-controlled apartments in the early 1950s, but only about 27,000 as of 2014. Show the effect of a rent control law on the equilibrium rental price and the quantity of N.Y. apartments. Show the amount of excess demand on your supply-and-demand diagram. Consider the market rental dwellings in New York illustrated in the figure to the right. Suppose the maximum rent with New York's laws is p. 1.) Using the point drawing tool, indicate the quantity of rental dwellings demanded and the market rent with the rent control laws. Label this point 'ed.' 2.) Using the point drawing tool, indicate the quantity of rental dwellings supplied and the market rent with the rent control laws. Label this point 'es.' Carefully follow the instructions above, and only draw the required objects. P, rent Q Q, quantity…arrow_forwardConsider a market where the equilibrium price for a good is $17 and the equilibrium quantity is 350 units. Assume that the quantity supplied at an above - equilibrium price is 5 times the equilibrium quantity, and the quantity demanded at the above - equilibrium price is 1/3 the equilibrium quantity. Calculate the surplus in the market at the above - equilibrium price. If necessary, round any intermediate calculations to one decimal place and your final answer to the nearest whole number.arrow_forward
- Consider the market for gasoline, illustrated in the figure to the right. The equilibrium quantity of gasoline is 15 million gallons (enter a numeric response using a real number rounded to two decimal places) and the equilibrium price is $2.50 per gallon. If instead the market price were $3.25, then there would be a of million gallons. Price of Gasoline (per gallon) 5.00 4.50- 4.00 3.50- 3.00 2.50- 2.00 1.50- 1.00 0.50- 0.00- S D 3 6 9 12 15 18 21 24 27 Quantity of Gasoline (gallons in millions) 30 + Oarrow_forwardSuppose the Hong Kong government imposes a price ceiling above the equilibrium price offlour. How does this price ceiling affect the price and the quantity sold of flour? Please explain.arrow_forwardOver the past few year's consumer tastes and the number of buyers in the market for a game called 'pickle ball' have increased dramatically. Thus, the demand for tickets to pickle ball events has increased. Before this all started the equilibrium price of a ticket to a pickle ball event was negative. This means that: A few years ago, there would have been a surplus of tickets even at a price of zero, now the invisible hand has pushed prices to greater than zero. A) A few years ago, the quantity of tickets demanded was less than quantity supplied. B) Pickle ball event tickets resembled the market for recyclable cardboard a few years ago C) Greater demand for pickle ball tournament tickets will lead to a greater demand - and higher pay - for professional pickle ball players. D) All of the above. E) B and D onlyarrow_forward
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