Equilibrium rent and equilibrium quantity of house rented.

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Answer 1

Question

Chapter 6, Problem 1SPA

a)

To determine

Equilibrium rent and equilibrium quantity of house rented.

a)

Expert Solution

Explanation of Solution

The equilibrium is attained at the point where demand equals the supply. By the figure, the equilibrium rent is $450 dollars per month and the equilibrium quantity of house rented is 20,000 housing units.

Economics Concept Introduction

Demand: Demand refers to the total value of the goods and services that are demanded at a particular price in a given period of time.

Supply: Supply refers to the total value of the goods and services available for purchase at a particular price in a given period of time.

b)

To determine

Rent paid and shortage of housing.

b)

Expert Solution

Explanation of Solution

Since the rent ceiling of $600 per month is set above the equilibrium rent of $450 per month, the action does not make the equilibrium rent illegal or irrelevant. Thus, the renters will pay the equilibrium rent of $450 per month. There will be no shortage of housing as the quantity demanded of housing units will be equal to the quantity supplied (20,000 housing units).

Economics Concept Introduction

Rent ceiling: Rent ceiling is a price ceiling on rental housing which is the setting of the maximum price allowed by law.

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Answer 2

Question

Chapter 6, Problem 1SPA

a)

To determine

Equilibrium rent and equilibrium quantity of house rented.

a)

Expert Solution

Explanation of Solution

The equilibrium is attained at the point where demand equals the supply. By the figure, the equilibrium rent is $450 dollars per month and the equilibrium quantity of house rented is 20,000 housing units.

Economics Concept Introduction

Demand: Demand refers to the total value of the goods and services that are demanded at a particular price in a given period of time.

Supply: Supply refers to the total value of the goods and services available for purchase at a particular price in a given period of time.

b)

To determine

Rent paid and shortage of housing.

b)

Expert Solution

Explanation of Solution

Since the rent ceiling of $600 per month is set above the equilibrium rent of $450 per month, the action does not make the equilibrium rent illegal or irrelevant. Thus, the renters will pay the equilibrium rent of $450 per month. There will be no shortage of housing as the quantity demanded of housing units will be equal to the quantity supplied (20,000 housing units).

Economics Concept Introduction

Rent ceiling: Rent ceiling is a price ceiling on rental housing which is the setting of the maximum price allowed by law.

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Answer 3

Question

Chapter 6, Problem 1SPA

a)

To determine

Equilibrium rent and equilibrium quantity of house rented.

a)

Expert Solution

Explanation of Solution

The equilibrium is attained at the point where demand equals the supply. By the figure, the equilibrium rent is $450 dollars per month and the equilibrium quantity of house rented is 20,000 housing units.

Economics Concept Introduction

Demand: Demand refers to the total value of the goods and services that are demanded at a particular price in a given period of time.

Supply: Supply refers to the total value of the goods and services available for purchase at a particular price in a given period of time.

b)

To determine

Rent paid and shortage of housing.

b)

Expert Solution

Explanation of Solution

Since the rent ceiling of $600 per month is set above the equilibrium rent of $450 per month, the action does not make the equilibrium rent illegal or irrelevant. Thus, the renters will pay the equilibrium rent of $450 per month. There will be no shortage of housing as the quantity demanded of housing units will be equal to the quantity supplied (20,000 housing units).

Economics Concept Introduction

Rent ceiling: Rent ceiling is a price ceiling on rental housing which is the setting of the maximum price allowed by law.

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Subscribe now to access step-by-step solutions to millions of textbook problems written by subject matter experts!

Answer 4

Question

Chapter 6, Problem 1SPA

a)

To determine

Equilibrium rent and equilibrium quantity of house rented.

a)

Expert Solution

Explanation of Solution

The equilibrium is attained at the point where demand equals the supply. By the figure, the equilibrium rent is $450 dollars per month and the equilibrium quantity of house rented is 20,000 housing units.

Economics Concept Introduction

Demand: Demand refers to the total value of the goods and services that are demanded at a particular price in a given period of time.

Supply: Supply refers to the total value of the goods and services available for purchase at a particular price in a given period of time.

b)

To determine

Rent paid and shortage of housing.

b)

Expert Solution

Explanation of Solution

Since the rent ceiling of $600 per month is set above the equilibrium rent of $450 per month, the action does not make the equilibrium rent illegal or irrelevant. Thus, the renters will pay the equilibrium rent of $450 per month. There will be no shortage of housing as the quantity demanded of housing units will be equal to the quantity supplied (20,000 housing units).

Economics Concept Introduction

Rent ceiling: Rent ceiling is a price ceiling on rental housing which is the setting of the maximum price allowed by law.

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Subscribe now to access step-by-step solutions to millions of textbook problems written by subject matter experts!

Answer 5

Chapter 6, Problem 1SPA

a)

To determine

Equilibrium rent and equilibrium quantity of house rented.

a)

Expert Solution

Explanation of Solution

The equilibrium is attained at the point where demand equals the supply. By the figure, the equilibrium rent is $450 dollars per month and the equilibrium quantity of house rented is 20,000 housing units.

Economics Concept Introduction

Demand: Demand refers to the total value of the goods and services that are demanded at a particular price in a given period of time.

Supply: Supply refers to the total value of the goods and services available for purchase at a particular price in a given period of time.

b)

To determine

Rent paid and shortage of housing.

b)

Expert Solution

Explanation of Solution

Since the rent ceiling of $600 per month is set above the equilibrium rent of $450 per month, the action does not make the equilibrium rent illegal or irrelevant. Thus, the renters will pay the equilibrium rent of $450 per month. There will be no shortage of housing as the quantity demanded of housing units will be equal to the quantity supplied (20,000 housing units).

Economics Concept Introduction

Rent ceiling: Rent ceiling is a price ceiling on rental housing which is the setting of the maximum price allowed by law.

Answer 6

Chapter 6, Problem 1SPA

a)

To determine

Equilibrium rent and equilibrium quantity of house rented.

a)

Expert Solution

Explanation of Solution

The equilibrium is attained at the point where demand equals the supply. By the figure, the equilibrium rent is $450 dollars per month and the equilibrium quantity of house rented is 20,000 housing units.

Economics Concept Introduction

Demand: Demand refers to the total value of the goods and services that are demanded at a particular price in a given period of time.

Supply: Supply refers to the total value of the goods and services available for purchase at a particular price in a given period of time.

Answer 7

Chapter 6, Problem 1SPA

a)

To determine

Equilibrium rent and equilibrium quantity of house rented.

Answer 8

a)

Expert Solution

Explanation of Solution

The equilibrium is attained at the point where demand equals the supply. By the figure, the equilibrium rent is $450 dollars per month and the equilibrium quantity of house rented is 20,000 housing units.

Answer 9

a)

Expert Solution

Answer 10

a)

Expert Solution

Answer 11

Expert Solution

Answer 12

Economics Concept Introduction

Demand: Demand refers to the total value of the goods and services that are demanded at a particular price in a given period of time.

Supply: Supply refers to the total value of the goods and services available for purchase at a particular price in a given period of time.

Answer 13

b)

To determine

Rent paid and shortage of housing.

b)

Expert Solution

Explanation of Solution

Since the rent ceiling of $600 per month is set above the equilibrium rent of $450 per month, the action does not make the equilibrium rent illegal or irrelevant. Thus, the renters will pay the equilibrium rent of $450 per month. There will be no shortage of housing as the quantity demanded of housing units will be equal to the quantity supplied (20,000 housing units).

Economics Concept Introduction

Rent ceiling: Rent ceiling is a price ceiling on rental housing which is the setting of the maximum price allowed by law.

Answer 14

b)

To determine

Rent paid and shortage of housing.

Answer 15

b)

Expert Solution

Explanation of Solution

Since the rent ceiling of $600 per month is set above the equilibrium rent of $450 per month, the action does not make the equilibrium rent illegal or irrelevant. Thus, the renters will pay the equilibrium rent of $450 per month. There will be no shortage of housing as the quantity demanded of housing units will be equal to the quantity supplied (20,000 housing units).