Supposed the law prescribed the renter to vacate an apartment within 30 days after being served with an eviction notice. To protect renters, the government passes a new law under which the renter must vacate the apartment in 90 days. The following graph shows the market for rental properties, where the demand curve represents demand for apartments under the old eviction law. Adjust the following graph to show the effect of the new eviction law on the market for rental properties.
Supposed the law prescribed the renter to vacate an apartment within 30 days after being served with an eviction notice. To protect renters, the government passes a new law under which the renter must vacate the apartment in 90 days. The following graph shows the market for rental properties, where the demand curve represents demand for apartments under the old eviction law. Adjust the following graph to show the effect of the new eviction law on the market for rental properties.
Macroeconomics: Principles and Policy (MindTap Course List)
13th Edition
ISBN:9781305280601
Author:William J. Baumol, Alan S. Blinder
Publisher:William J. Baumol, Alan S. Blinder
Chapter4: Supply And Demand: An Initial Look
Section: Chapter Questions
Problem 7DQ
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![Supposed the law prescribed the renter to vacate an apartment within 30 days after being served with an eviction notice. To protect renters, the
government passes a new law under which the renter must vacate the apartment in 90 days.
The following graph shows the market for rental properties, where the demand curve represents demand for apartments under the old eviction law.
Adjust the following graph to show the effect of the new eviction law on the market for rental properties.
PRICE (Apartment Rent)
140
126
112
98
84
70
56
42
28
14
0
+
Based on the graph, the rental price
Supply
011 22 33 44 55 68 77 88 99 110
QUANTITY (Apartments)
to $
Demand
Demand
Supply
?
and the number of available apartments
For the first drop down the choices are rises/falls and for the second drop down the choices are increases/decreases.](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fd59e17ff-7a7c-4167-8c0b-fb870a3da76d%2Fcb3f88ba-8fac-4fe2-9b81-7eb6fd8c76f2%2Fi9fwi4j_processed.jpeg&w=3840&q=75)
Transcribed Image Text:Supposed the law prescribed the renter to vacate an apartment within 30 days after being served with an eviction notice. To protect renters, the
government passes a new law under which the renter must vacate the apartment in 90 days.
The following graph shows the market for rental properties, where the demand curve represents demand for apartments under the old eviction law.
Adjust the following graph to show the effect of the new eviction law on the market for rental properties.
PRICE (Apartment Rent)
140
126
112
98
84
70
56
42
28
14
0
+
Based on the graph, the rental price
Supply
011 22 33 44 55 68 77 88 99 110
QUANTITY (Apartments)
to $
Demand
Demand
Supply
?
and the number of available apartments
For the first drop down the choices are rises/falls and for the second drop down the choices are increases/decreases.
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