Homework Clinic

Social Science Clinic => Economics => Microeconomics => Topic started by: rlane42 on May 24, 2019

Title: The figure above illustrates the current market for apartments in Washington, D.C. a. If the local ...
Post by: rlane42 on May 24, 2019

The figure above illustrates the current market for apartments in Washington, D.C.
a.   If the local government imposes a price ceiling of $1,500 per month, is there a shortage? If so, how much? If not, why not?
b.   If the local government imposes a price ceiling of $900 per month, is there a shortage? If so, how much? If not, why not?

Title: The figure above illustrates the current market for apartments in Washington, D.C. a. If the local ...
Post by: Chou on May 24, 2019

a.   There is not a shortage. The equilibrium rent is $1,200 a month. Because the rent ceiling is above the equilibrium rent, it has no effect.
b.   There is a shortage. At a rent of $900 per month, the quantity of units demanded is 100,000 and the quantity of units supplied is 60,000. Hence there is a shortage of 40,000 units.

Title: The figure above illustrates the current market for apartments in Washington, D.C. a. If the local ...
Post by: rlane42 on May 24, 2019

Thanks

Title: The figure above illustrates the current market for apartments in Washington, D.C. a. If the local ...
Post by: Chou on May 24, 2019

Welcome :)

Title: Re: The figure above illustrates the current market for apartments in Washington, D.C. a. If the loc
Post by: Ibrahim Allie on Feb 2, 2021

Thanks