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Question: the following information will be used to solve q1q4 of...

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The following information will be used to solve Q1-Q4 of this quiz. Consider the rental housing market in Sydney. The following graph describes this market. The vertical axis represents the monthly rental price. The horizontal axis represents the number of homes rented per month (in '000s).

 

Suppose initially that the market is allowed to operate as a free market. What will be the market price and quantity in this market?

 

A) (P, Q) = (2500, 40)

B) (P, Q) = (2000, 50)

C) (P, Q) = (1500, 40)

D) There is no equilibrium in this market

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