Predict the size of the resulting apartment shortage

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Elasticity of demand in the market for one-bedroom apartments is 2.0, elasticity of supply is 0.5, the current market price is $1,000, and the equilibrium number of one-bedroom apartments is 10,000. If the government imposes a price ceiling of $800 on this market, predict the size of the resulting apartment shortage.

Reference no: EM131431150

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