Reference no: EM132649032

Industry demand and supply functions for one-bedroom condominiums for senior citizens are as follows:

• Q is the number of one-bedroom condominiums for senior citizens built per year.
• P is the average price of one-bedroom condominiums in thousands of dollars.
• R is the average rent for a one-bedroom apartment in dollars; estimated to be $1,500.
• I is the average annual income in thousands of dollars; estimated to be $75,000.
• Pop. is population in millions; estimated to be 300 million.
• i is the average interest rate in percent; estimated to be 12 percent.
• A is advertising expenditures in thousands of dollars; estimated to be $500,000.
• W is the average hourly wage rate for skilled labor in dollars; estimated to be $40.

Determine if there is a surplus or shortage at P = $150,000.

Determine if there is a surplus or shortage P = $225,000.