The figure below shows the demand for on-campus housing. The college has 200 rooms to rent. If the college puts a strictly enforced rent ceiling on rooms of $550 a month: a. What is the rent? b. How many rooms are rented? c. Is the on-campus housing market efficient? Explain why or why not.

The figure below shows the demand for on-campus housing. The college has 200 rooms to rent. If the college puts a strictly enforced rent ceiling on rooms of $550 a month: a. What is the rent? b. How many rooms are rented? c. Is the on-campus housing market efficient? Explain why or why not.

Microeconomics A Contemporary Intro

10th Edition

ISBN:9781285635101

Author:MCEACHERN

Publisher:MCEACHERN

Chapter4: Demand, Supply, And Markets

Section: Chapter Questions

Problem 22PAE

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Question

The figure below shows the demand for on-campus housing. The college has 200 rooms to rent.
If the college puts a strictly enforced rent ceiling on rooms of $550 a month:
a. What is the rent?
b. How many rooms are rented?
c. Is the on-campus housing market efficient? Explain why or why not.
Price (dollars per month)
700
650
600
550
500
D
150
175
200
225
250
Quantity (rooms)

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