Respuesta :
Answer:
a) Equliibrium Price: 2,000,
b) Shortage, 5,000 Â units, 10,000 units actually rented
c) Surplus, 5,000 units, 10,000 units actually rented
Explanation:
The demand and supply schedules for rental apartments in the city of Gotham are given as:
Monthly Rent     Apartments Demanded       Apartments Supplied
2500 Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â 10,000 Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â 15,000
2000 Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â 12,500 Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â 12,500
1500 Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â 15,000 Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â 10,000
1000 Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â 17,500 Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â 7,500
500 Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â 20,000 Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â 5,000
a) At equilibrium price, number of apartment demanded equals number of apartment supplied. From the table, the equilibrium price is $2,000.
b) Â If the local government can enforce a rent-control law that sets the maximum monthly rent at $1500, then number of apartments supplied is 10,000. and the number of apartments demanded is 15,000.
This means there is going to be a shortage of 15,00-10,000=5,000.
The number of units that is actually rented is 10,000
c) if  a new government declares that the minimum rent that can be charged is $2500 per month, then , the apartments supplied at this price is15,000 units and the apartment demanded at this price is 10,000 units. Since supply outweighs demand, there is going to be a surplus of 15,000-10,000=5,000 units.
The number of units that is actually rented each month refers to the effective demand, which is 10,000