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Suppose that the demand and supply schedules for rental apartments in the city of Gotham are as given in the t?

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Suppose that the demand and supply schedules for rental apartments in the city of Gotham are as given in the t?

Postby colum » Wed Nov 30, 2011 9:09 pm

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
$2,500 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
??

b. If the local government can enforce a rent-control law that sets the maximum monthly rent at $1500, will there be a surplus or a shortage?

Of how many units?

< >apartments per month

How many units will actually be rented each month?

( )apartments will be rented.

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 $2500 per month. If the government can enforce that price floor, will there be a surplus or a shortage?



Of how many units?

< >apartments per month

How many units will actually be rented each month?

< >apartments will be rented.


d. Start at the original (correct) equilibrium price and quantity in part (a). Suppose that the government wishes to decrease the market equilibrium monthly rent by increasing the supply of housing. Assuming that demand remains unchanged, by how many units of housing would the government have to increase the supply of housing in order to get the market equilibrium rental price to fall to $1500 per month? To $1000 per month? To $500 per month?

Fall to $1500 per month: ( )units

Fall to $1000 per month: ( ) units

Fall to $500 per month: ( ) units
colum
 
Posts: 15
Joined: Fri Apr 01, 2011 5:51 am

Suppose that the demand and supply schedules for rental apartments in the city of Gotham are as given in the t?

Postby nissim42 » Wed Nov 30, 2011 9:21 pm

Your calculator doesn't work?
nissim42
 
Posts: 16
Joined: Thu Mar 31, 2011 10:31 pm


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