The equation of demand is Q=10000-5p, supply is Q=-2000+10p Q represents the quantity of houses on the market and P the rental price. The equilibriumrental price equals 800 euros per month. if the government increase the supply of rental houses, by building 3,000 extra houses,What are the effects of each measure for both house owners and people renting ahouse? And what are the consequences for the government? Analyse the measuresgraphically and mathematically.

Essentials of Economics (MindTap Course List)
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ISBN:9781337091992
Author:N. Gregory Mankiw
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Chapter6: Supply, Demand And Government Policies
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The equation of demand is Q=10000-5p,

supply is Q=-2000+10p

Q represents the quantity of houses on the market and P the rental price. The equilibriumrental price equals 800 euros per month.

if the government increase the supply of rental houses, by building 3,000 extra houses,What are the effects of each measure for both house owners and people renting ahouse? And what are the consequences for the government? Analyse the measuresgraphically and mathematically.

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