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Question: price 25 30 35 40 45 qd 80 65 50...

Question details

price 25 30 35 40 45

QD 80 65 50 35 20

QS 20 35 50 65 80

20

Suppose that the demand and supply schedules for rental apartments in the city of Gotham are as given in the table below.


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 $1,500, will there be a surplus or a shortage?



       (Click to select)   Surplus   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 $2,500 per month. If the government can enforce that price floor, will there be a surplus or a shortage?



       (Click to select)   Surplus   Shortage



     Of how many units?



     How many units will actually be rented each month?

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