Suppose that the demand and supply schedules for rental apartments in the city of Gotham are as given in the table below. Apartments Demanded Apartments Supplied Monthly Rent $ 2,750 10,000 15,000 2,250 12,500 12,500 1,750 15,000 10,000 7,500 1,250 17,500 750 20,000 5,000 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 price floor, will there be a surplus or a shortage? Surplus Of how many units? apartments per month How many units will actually be rented each month? apartments
Suppose that the demand and supply schedules for rental apartments in the city of Gotham are as given in the table below. Apartments Demanded Apartments Supplied Monthly Rent $ 2,750 10,000 15,000 2,250 12,500 12,500 1,750 15,000 10,000 7,500 1,250 17,500 750 20,000 5,000 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 price floor, will there be a surplus or a shortage? Surplus Of how many units? apartments per month How many units will actually be rented each month? apartments
Economics: Private and Public Choice (MindTap Course List)
16th Edition
ISBN:9781305506725
Author:James D. Gwartney, Richard L. Stroup, Russell S. Sobel, David A. Macpherson
Publisher:James D. Gwartney, Richard L. Stroup, Russell S. Sobel, David A. Macpherson
Chapter24: Price-searcher Markets With High Entry Barriers
Section: Chapter Questions
Problem 12CQ
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