Question

Over the next few years, several newly constructed office blocks will become available at the World Trade Center site. As well, economists expect the New York economy will continue to exhibit modest growth. What is the expected outcome for the office space market in downtown Manhattan?

Answer 1

Answer:

The correct answer is Unambiguously higher equilibrium quantity, and equilibrium rental rates could be higher or lower.

Explanation:

An economic equilibrium is a state of the world in which economic forces are balanced and in the absence of external influences the values of economic variables do not change. It is the point at which the quantity demanded and the quantity offered are equal, a market equilibrium, for example, refers to the condition in which the market price is established through competition so that the quantity of Goods and services desired by buyers is equal to the amount of goods and services produced by sellers. This price is usually called the equilibrium price and tends to remain stable as long as demand and supply do not vary.