What is the equilibrium rental for a one-bedroom apartment

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Suppose that there are 1,000 one-bedroom apartments in a small town and that this number is fixed. The table gives the quantity demand in the market for one-bedroom apartments.

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(a) What is the equilibrium rental for a one-bedroom apartment?

(b) Suppose 200 new one-bedroom apartments are constructed. What happens to the equilibrium rent? (c) Suppose more people move into the town, increasing the demand for one-bedroom apartments by 200 units at each price. What is the new equilibrium price? (Assume the supply remains fixed at 1,200 units.)

Reference no: EM131142471

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