Suppose that the demand and supply schedules for rental apartments in the city of Gotham are as below given in the table Apartments Demanded Apartments Supplied Monthly Rent $2,500 10,000 15,000 2,000 12,500 12,500 1,500 15,000 10,000 17,500 1,000 7,500 5,000 500 20,000 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 $1,500 per month? units To $1,000 per month? units To $500 per month? |units
Suppose that the demand and supply schedules for rental apartments in the city of Gotham are as below given in the table Apartments Demanded Apartments Supplied Monthly Rent $2,500 10,000 15,000 2,000 12,500 12,500 1,500 15,000 10,000 17,500 1,000 7,500 5,000 500 20,000 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 $1,500 per month? units To $1,000 per month? units To $500 per month? |units
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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Transcribed Image Text:Suppose that the demand and supply schedules for rental apartments in the city of Gotham are as
below
given in the table
Apartments
Demanded
Apartments
Supplied
Monthly Rent
$2,500
10,000
15,000
2,000
12,500
12,500
1,500
15,000
10,000
17,500
1,000
7,500
5,000
500
20,000
Transcribed Image Text: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 $1,500 per month?
units
To $1,000 per month?
units
To $500 per month?
|units
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