Demand and supply equations for housing market per month are given below. • Demand for housing: ?? = 2500 − 0.5 ? • Supply of housing: ?? = −500 + ? a) Draw the demand and supply curves for housing market in one graph. b) Find the equilibrium quantity and price for housing. c) Compute the consumer and producer surplus in equilibrium. d) Suppose that the government set a rent ceiling at $1800. What are the quantities of housing supplied and demanded at this price? In this case, is there a shortage or surplus of houses? e) How does the price ceiling affect the efficiency in the housing market? f) Calculate the deadweight loss in the housing market after the price ceiling is imposed by the government. g) Calculate the potential spending for housing search activities
• Demand for housing: ?? = 2500 − 0.5 ?
• Supply of housing: ?? = −500 + ?
a) Draw the demand and supply
b) Find the
c) Compute the
d) Suppose that the government set a rent ceiling at $1800. What are the quantities of
housing supplied and demanded at this price? In this case, is there a shortage or
surplus of houses?
e) How does the
f) Calculate the
imposed by the government.
g) Calculate the potential spending for housing search activities
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