In the graph below we model the long-term rental market (i.e. contract of 6 months or more), assuming it is perfectly competitive. Let's try to model the impact that short-term rental platforms might have on this market. To do so, let's compare a market without such platform (before) and a market after the platforms have been introduced. In the figures, the vertical axis r is the price, while Q is the quantity of rental accommodation. Which figure best represents the introduction of short-term rental platforms? a) top-left b) top-right c) bottom-left d) bottom-right Their effect is to cause a) an increase b) a decrease or c) neither an increase nor a decrease in rental prices? and a) an increase b) a decrease or c) neither an increase nor a decrease in rental accommodation?

In the graph below we model the long-term rental market (i.e. contract of 6 months or more), assuming it is perfectly competitive. Let's try to model the impact that short-term rental platforms might have on this market. To do so, let's compare a market without such platform (before) and a market after the platforms have been introduced. In the figures, the vertical axis r is the price, while Q is the quantity of rental accommodation. Which figure best represents the introduction of short-term rental platforms? a) top-left b) top-right c) bottom-left d) bottom-right Their effect is to cause a) an increase b) a decrease or c) neither an increase nor a decrease in rental prices? and a) an increase b) a decrease or c) neither an increase nor a decrease in rental accommodation?

Managerial Economics: Applications, Strategies and Tactics (MindTap Course List)

14th Edition

ISBN:9781305506381

Author:James R. McGuigan, R. Charles Moyer, Frederick H.deB. Harris

Publisher:James R. McGuigan, R. Charles Moyer, Frederick H.deB. Harris

Chapter4: Estimating Demand

Section: Chapter Questions

Problem 6E

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