a.
Equilibrium is the stage where demand and supply equates.
It happens at $2,000 price where (demand = supply = 12,500).
Equilibrium price = $2,000
Equilibrium quantity = 12,500
b.
At $1,500 price, demand is (15,000) greater than supply (10,000); therefore, there is a shortage.
Answer: shortage
Shortage units = Quantity demanded at $1,500 – Quantity supplied at $1,500
= 15,000 – 10,000
= 5,000 (Answer)
Actually rented = Quantity supplied at $1,500
= 10,000
c.
At $2,500 price, demand is (10,000) smaller than supply (15,000); therefore, there is a surplus.
Answer: surplus
Surplus units = Quantity supplied at $2,500 – Quantity demanded at $2,500
= 15,000 – 10,000
= 5,000 (Answer)
Actually rented = Quantity demanded at $2,500
= 10,000
Suppose that the demand and supply schedules for rental apartments In the city of Gotham are...
19 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 2,500 2,000 1,500 1,000 500 12,500 15,000 17,500 20,000 22,500 17,500 15,000 12,500 10,000 7,500 Instructions: Enter your answers as whole numbers. a. What is the market equilibrium rental price per month and the market equilibrium number of apartments demanded and supplied? Market equilibrium rental price is: S 15,000 per C....
19 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 2,500 2,000 1,500 1,000 500 12,500 15,000 17,500 20,000 22,500 17,500 15,000 12,500 10,000 7,500 b. If the local government can enforce a rent-control law that sets the maximum monthly rent at $1,500, will there be a surplus or a shortage? (Click to select) Surplus Shortage Of how many units? apartments...
Suppose that the demand and supply schedules for rental apartments in the city of Gotham are as given in the table below. Instructions: Enter your answers as whole numbers. a. What is the market equilibrium rental price per month and the market equilibrium number of apartments demanded and supplied? Market equilibrium rental price is: Market equilibrium quantity is: b. If the local government can enforce a rent-control law that sets the maximum monthly rent at $1,500, will there...
Suppose that the demand and supply schedules for rental apartments in the city of Gotham are as given in the table below. Monthly Rent Apartments Demanded 2,500 2,000 1,500 1,000 500 12,500 15,000 17,500 20,000 22,500 17,500 15,000 12,500 10,000 7,500 19 b. If the local government can enforce a rent-control law that sets the maximum monthly rent at $1,500, will there be a surplus or a shortage? Cick to select Surplus Shortage Of how many units? apartments per month...
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Suppose that the demand and supply schedules for rental apartments in the city of Gotham are as given in the table below. a. What is the market equilibrium rental price per month and the market equilibrium number of apartments demanded and supplied? b. If the local government can enforce a rent-control law that sets the maximum monthly rent at $2,000, will there be a surplus or a shortage? c. Suppose that a new government is elected that wants to keep out the poor. It...
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