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The table below shows the demand and supply schedules for on-campus housing.
Rent Q Demanded Q Supplied
(Dollars per month) (rooms)
500 2,500 2,000
550 2,250 2,000
600 2,000 2,000
650 1,750 2,000
700 1,500 2,000
750 1,250 2,000
How can this be displayed in a graph?
a. What are the equilibrium rent and number of rooms?
b. If the college puts a rent ceiling on rooms of $650 a month, what is the rent and how many rooms are rented?
c. If the college puts a rent ceiling of $550 a month, what is the rent and how many rooms are rented?
d. If a black market develops, how high could the black market rent be?
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