EBK MICROECONOMICS
9th Edition
ISBN: 8220103630955
Author: Rubinfeld
Publisher: PEARSON
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Question
Chapter 2, Problem 9RQ
(a)
To determine
Graphical illustration of changes in rental price of an apartment.
(b)
To determine
Whether the rent regulation policy benefits all students.
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Chapter 2 Problem #5. Suppose the demand and supplycurves for a product are given by QD= 500 −2PQS=−100 + 3Pa. Graph the supply and demand curves.b. Find the equilibrium price and quantity.Qd= Q3500-2P= -100+3PP= Pe = 120 & Qe=260The equilibrium price is $120 and the quantity is 260c. If the current price of the product is $100, what is thequantity supplied and the quantity demanded? How would you describe thissituation, and what would you expect to happen in this market?d. If the current price of the product is $150, what is thequantity supplied and the quantity demanded? How would you describe thissituation, and what would you expect to happen in this market?e. Suppose that demand changes to QD= 600 – 2P.Find the new equilibrium price and quantity, and show this on your graph.***PLEASE SHOW ALL EQUATIONS AND METHODS,
2. Below is the market information for rental housing in an urban market:
Demand
P₁ = $4000
Q = 0
P₂ = $2000 Q = 40
Supply
Q. = 60
P. = $3000
P, = $1000
Q, = 20
a. Construct the graph for the market of rental housing based on this data.
b. Set a price ceiling at $1000.00 per unit of rental housing and describe the results.
3. Below are the equations for the quantity demanded and quantity supplied for a given market. Using the
equations please find the equilibrium price quantity. Remember, at equilibrium Q, - 2-
40 - 4P = Q |
10+ 6P = Q
You have been given the following information about the housing market for two-
bedroom rental units in Vancouver:
Rent ($ per
Quantity Demanded (per
month)
Quantity Supplied (per
month)
month)
1,100
20,000
1,200
15,000
5,000
1,300
10,000
10,000
1,400
5,000
15,000
1,500
2,500
20,000
1,600
1,500
25,000
a. Draw a supply and demand graph to illustrate the housing market above.
Answer:
b. What is the equilibrium rental price and the equilibrium quantity of
housing?
Answer:
c. Suppose that a price ceiling of $1,200 rent per month is imposed in the
Vancouver housing market, what will be the effect of this on housing
market in Vancouver?
Answer:
Chapter 2 Solutions
EBK MICROECONOMICS
Ch. 2 - Prob. 1RQCh. 2 - Prob. 2RQCh. 2 - If a 3-percent increase in the price of corn...Ch. 2 - Prob. 4RQCh. 2 - Explain why for many goods, the long-run price...Ch. 2 - Why do long-run elasticities of demand differ from...Ch. 2 - Prob. 7RQCh. 2 - Prob. 8RQCh. 2 - Prob. 9RQCh. 2 - In a discussion of tuition rates, a university...
Ch. 2 - Suppose the demand curve for a product is given by...Ch. 2 - Prob. 12RQCh. 2 - Prob. 13RQCh. 2 - Prob. 1ECh. 2 - Consider a competitive market for which the...Ch. 2 - Prob. 3ECh. 2 - Prob. 4ECh. 2 - Prob. 5ECh. 2 - Prob. 6ECh. 2 - In 2010, Americans smoked 315 billion cigarettes,...Ch. 2 - In Example 2.8 we examined the effect of a...Ch. 2 - In Example 2.8 (page 52), we discussed the recent...Ch. 2 - Prob. 12E
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