Rent/Month ($)
Number of Apts. Demanded/Month
Number of Apts. Supplied/Month
0
120,000
0
200
100,000
20,000
400
80,000
40,000
600
60,000
60,000
800
40,000
80,000
1,000
20,000
100,000
1,200
0
120,000
7. Draw the demand and supply curves for apartments.
8. What is the equilibrium rent per month? At this rent, what is the number of apartments demanded and supplied per month?
9. Suppose a ceiling on rents is set at $400 per month. Will this lead to a surplus, a shortage, or neither a surplus nor a shortage?
10. At the rent ceiling, how many apartments are demanded? How many are supplied?