What is the equilibrium price and quantity of apartments

Assignment Help Business Economics

Reference no: EM13859915

The demand for apartments is P=1200-Q while the supply is given by P=Q units.

a. Graph the supply and demand curves.

b. What is the slope of the supply curve? What is the P-intercept of the supply curve?

c. What is the slope of the demand curve? What is the P-intercept of the demand curve?

d. What is the equilibrium price and quantity of apartments?

e. Now suppose that the government imposes rent control at P=$300/month so the price of apartments in the market is $300/month. At a price of $300/month is there excess demand or excess supply? How much?

f. Now, suppose the reservation price of each buyer in the market increases by $200/month. What is the new equation of the demand curve?

g. If the rent control stays at $300/month with the new demand curve, is there excess demand or excess supply? How much?

Reference no: EM13859915

Questions Cloud

Competitive-unregulated market-externalities and utility : A competitive, unregulated market would. Utility is the. Externalities

Impact of employment and unemployment in free market : you will explain the impact of employment and unemployment in a free market economy. The country of France legislated the maximum length of a workweek. Because Americans tend to work more hours than Europeans, should the US government also legislate ..

Faced with business competition on a global scale : Chevron Corporation is one of the largest integrated oil companies in the world. Its management is assessing the world marketplace and taking steps to sustain the company’s competitive position. Faced with business competition on a global scale, Chev..

Business cycle in government and private sector decisions : In this discussion, you will explain the role of the business cycle in government and private sector decisions. Data on GDP and economic growth are considered lagging indicators because they report information on what is already known. Should wages a..

What is the equilibrium price and quantity of apartments : The demand for apartments is P=1200-Q while the supply is given by P=Q units. What is the slope of the supply curve? What is the P-intercept of the supply curve? What is the slope of the demand curve? What is the P-intercept of the demand curve? What..

Suppose firms benefit and cost structure : Suppose a firms benefit and cost structure is given by the following respectively B(q) = 400Q-5Q^2 C(q) = 3Q^2 what is the output level at which net benefits are maximized?

Was the policy effective to increase aggregate demand : Consumer spending during holiday seasons affects the aggregate demand (AD) in the economy. AD drastically declines during serious recessions. Explain what President Roosevelt might have been trying to achieve, using the model of aggregate demand and ..

Interest rate affects the investment patterns in economy : The interest rate affects the investment patterns in the economy. A friend of yours suggests a get-rich-quick scheme: Borrow from the nation with the lower nominal interest rate, invest in the nation with the higher nominal interest rate, and profit ..

Firm finds that the marginal product of capital : Suppose a firm finds that the marginal product of capital is 60 and the marginal product of labor is 20. If the price of capital is $6 and the price of labor is $2.50, describe how the firm should adjust its mix of capital and labor? What will be the..

User Account

All Pages