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2 years ago

Suppose a city is considering placing a ceiling on rent for one-bedroom apartments, at $1,000 per apartment.

Business

1 answer:

Dafna1 [17]2 years ago

4 0

Answer:

(a) The market equilibrium rent is $1,400 and the equilibrium quantity is 15 thousand apartments.

(b) With the price ceiling, the rent is $1,000 per apartment and the quantity rented is 10 thousand apartments.

Explanation:

(a) At equilibrium, demand function equals supply function

1700 - 20Q = 80Q + 200

1700 - 200 = 80Q + 20Q

100Q = 1500

Q = 1500/100 = 15

Substitute the value of Q in the demand function

P = 1700 - 20Q = 1700 - 20(15) = 1700 - 300 = 1400

Equilibrium rent = $1,400

Equilibrium quantity is 15 thousand apartments

(b) Rent with price ceiling is $1,000 per apartment

Substitute the value of P in the supply function

P = 80Q + 200

1000 = 80Q + 200

1000 - 200 = 80Q

80Q = 800

Q = 800/80 = 10

Quantity rented is 10 thousand apartments

P = 1000

Q = (1700 - 1000)/20 = 700/20 = 35

Excess demand = 35 - 15 = 20

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monitta

Answer:

4.09%

Explanation:

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Given that,

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2 years ago

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Tasya [4]

Answer:

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Explanation:

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The best marketing strategy to determine this need/want is called Market survey. this survey can be carried out by creating a one page questionnaire about her intended product and post/send it to the relevant audience for appropriate feedback and also to professionals in her intended product. the feedback she gets from the questionnaire will help inform her on the best product to sell.

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An insurance company has offered your friend the choice of $45,000 per year for 15 years, with the first payment being made toda

TiliK225 [7]

Answer:

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Explanation:

We use the present value formula i.e to be shown in the attached spreadsheet

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Future value = $0

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