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
Microeconomics: Private and Public Choice (MindTap Course List)
16th Edition
ISBN:9781305506893
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
Chapter11: Price-searcher Markets With High Entry Barriers
Section: Chapter Questions
Problem 12CQ
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