Question

2. Suppose that there are 1,000 one-bedroom apartments in a small town and that this number is fixed. The table gives the quantity demand in the market for one-bedroom apartments. Price (Rent per month) Demand (Apartment units) $500 1,600 $600 1,400 $700 1,200 $800 1,000 $900 800 $1,000 600 $1,200 400 (a). What is the equilibrium rental for a one-bedroom apartment? (b). Suppose 200 new one-bedroom apartments are constructed. What happens to the equilibrium rent? (c). Suppose more people move into the town, increasing the demand for one-bedroom apartments by 200 units at each price. What is the new equilibrium price? (Assume the supply remains fixed at 1,200 units).

          2. Suppose that there are 1,000 one-bedroom apartments in a small town and that this number is fixed. The table gives the quantity demand in the market for one-bedroom apartments.

Price (Rent per month) Demand (Apartment units)
$500 1,600
$600 1,400
$700 1,200
$800 1,000
$900 800
$1,000 600
$1,200 400

(a). What is the equilibrium rental for a one-bedroom apartment?
(b). Suppose 200 new one-bedroom apartments are constructed. What happens to the equilibrium rent?
(c). Suppose more people move into the town, increasing the demand for one-bedroom apartments by 200 units at each price. What is the new equilibrium price? (Assume the supply remains fixed at 1,200 units).

2. Suppose that there are 1,000 one-bedroom apartments in a small town and that this number is fixed. The table gives the quantity demand in the market for one-bedroom apartments.

Price (Rent per month) Demand (Apartment units)
500 1,600600 1,400
700 1,200800 1,000
900 8001,000 600
1,200 400

(a). What is the equilibrium rental for a one-bedroom apartment?
(b). Suppose 200 new one-bedroom apartments are constructed. What happens to the equilibrium rent?
(c). Suppose more people move into the town, increasing the demand for one-bedroom apartments by 200 units at each price. What is the new equilibrium price? (Assume the supply remains fixed at 1,200 units).

Added by Daniel C.

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