monthly rent , apartments demanded, apartments supplied $2500 10,000 15,000 2000
ID: 1255059 • Letter: M
Question
monthly rent , apartments demanded, apartments supplied$2500 10,000 15,000
2000 12,500 12,500
1500 15,000 10,000
1000 17,500 7500
500 20,000 5000
numbers represent monthly rent starting with 2500, apartments demanded starting with 10,000 and apartments supplied starting with 15K
suppose that the government wishes to decrease the market equilibrium monthly rent by increasing the supply of housing. Assuming that demand reamains 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 $1500 per month? to $1000 per month and to $500 per month?
Explanation / Answer
If they started at quilibrium they charge 2000 and supply 12500 and the demand is 12500. T0 get the equilibrium to fall to 1500 per month, we would have to increase the quantity by 2500 to 15000. To get the monthly rent to 1000 we would have to increase the quantity by 5000 to 17500. To get the monthly rent to fall to 500 we would have to increase the quantity by 7500 to 20000. Hope this helps
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