How much percent can we expect the price of rental apartment

Reference no: EM13199606

Suppose a new law comes out which taxes apartment owners if they divide their apartments and rent out each section separately.

Here are more details:

* The flexibility of the supply curve of rental apartments before the law came out was 0.15

* Before the law came out, there was an increase in demand for rental apartments, and this caused a 30 percent rise in the number of apartments rented out

How much percent can we expect the price of rental apartments to rise after the law is enforced, if we know that we expect an additional rise in demand for rental apartments which will cause an additional 20 percent rise in the number of apartments rented out?

Reference no: EM13199606

Questions Cloud

What is the cpi : The table below shows the market basket quantities and prices for the base year year 1.Base year 1 Price in price Quantity base year yr 2 Product.

Find the equilibrium level of real gdp for smallville : Find the equilibrium level of real GDP for Smallville. Note: you will have to solve a quadratic equation - and GDP cannot be negative, for obvious reasons. Y = AD (equilibrium condition) T = 1,200 (taxes - non-income)

What can we derive from the fact in terms of crowdedness : The crowdedness of the city is fixed, and has no relationship to the distance from the central business district. In other words, as we go further and further from the central business district, the level of crowdedness of the apartments remain un..

Equation to derive price level differ from its initial value : Consider an economy with a constant nominal money supply, a constant level of real output Y = 100, and a constant real interest rate, r = 0.10.

How much percent can we expect the price of rental apartment : How much percent can we expect the price of rental apartments to rise after the law is enforced, if we know that we expect an additional rise in demand for rental apartments which will cause an additional 20 percent rise in the number of apartment..

What is the sacrifice ratio in the economy : Suppose that an economy has the Phillips curve p = p-1 - 0.5(u - un), and that the natural rate of unemployment is given by an average of the past two years' unemployment: un = 0.5(u-1 + u-2).

Why can we be sure that no household will choose electricity : Kristina knows that deadweight loss is something that this small town can do without. She suggests that each household be required to pay a fixed amount just to receive any electricity at all, and then a per-unit charge for electricity.

Indicate the profit-maximizing output for each factory : On a diagram, draw the marginal cost curves for the two factories, the average and marginal revenue curves, and the total marginal cost curve (i.e., the marginal cost of producing Q = Q1 + Q2). Indicate the profit-maximizing output for each factor..

Explain the process of financial planning : Explain the process of financial planning used to estimate asset investment requirements for a corporation. Explain the concept of working capital management. Identify and briefly describe several financial instruments that are used as marketable ..

User Account

All Pages