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Consider the market for rental housing in Yourtown. The demand and (short-run) supply schedules for rental housing are given in the table. a. In a free market for rental housing, the equilibrium price is $ 600 and the equilibrium quantity is 100,000 units. (Type whole numbers.) b. Now suppose the government in Yourtown decides to impose a ceiling on the monthly rental price. Such a ceiling should be set in order to have any effect on the market because this is the C Price ($ per month) 1400 1200 1000 800 600 400 200 Market for Rental Housing Quantity Demanded (thousands of units) 20 40 60 80 100 120 140 Quantity Supplie (thousands of uni 180 160 140 120 100 80 60

Consider the market for rental housing in Yourtown. The demand and (short-run) supply schedules for rental housing are given in the table. a. In a free market for rental housing, the equilibrium price is $ 600 and the equilibrium quantity is 100,000 units. (Type whole numbers.) b. Now suppose the government in Yourtown decides to impose a ceiling on the monthly rental price. Such a ceiling should be set in order to have any effect on the market because this is the C Price ($ per month) 1400 1200 1000 800 600 400 200 Market for Rental Housing Quantity Demanded (thousands of units) 20 40 60 80 100 120 140 Quantity Supplie (thousands of uni 180 160 140 120 100 80 60

Economics: Private and Public Choice (MindTap Course List)
Economics: Private and Public Choice (MindTap Course List)
16th Edition
ISBN:9781305506725
Author:James D. Gwartney, Richard L. Stroup, Russell S. Sobel, David A. Macpherson
Publisher:James D. Gwartney, Richard L. Stroup, Russell S. Sobel, David A. Macpherson
Chapter4: Demand And Supply: Applications And Extensions
Section: Chapter Questions
Problem 2CQ
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Consider the market for rental housing in Yourtown. The demand and (short-run) supply schedules for rental housing are given in the table. a. In a free market for rental housing, the equilibrium price is $ 600 and the equilibrium quantity is 100,000 units. (Type whole numbers.) b. Now suppose the government in Yourtown decides to impose a ceiling on the monthly rental price. Such a ceiling should be set $ in order to have any effect on the market because this is the C Price ($ per month) 1400 1200 1000 800 600 400 200 Market for Rental Housing Quantity Demanded (thousands of units) 20 40 60 80 100 120 140 Quantity Supplie (thousands of uni 180 160 140 120 100 80 60
Transcribed Image Text:Consider the market for rental housing in Yourtown. The demand and (short-run) supply schedules for rental housing are given in the table. a. In a free market for rental housing, the equilibrium price is $ 600 and the equilibrium quantity is 100,000 units. (Type whole numbers.) b. Now suppose the government in Yourtown decides to impose a ceiling on the monthly rental price. Such a ceiling should be set $ in order to have any effect on the market because this is the C Price ($ per month) 1400 1200 1000 800 600 400 200 Market for Rental Housing Quantity Demanded (thousands of units) 20 40 60 80 100 120 140 Quantity Supplie (thousands of uni 180 160 140 120 100 80 60
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