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Suppose a new law comes out which taxes apartment owners if they divide their apartments and rent out each section separately.
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The flexibility of the supply curve of rental apartments before the law came out was 0.15
Before the law came out, there was an increase in demand for rental apartments, and this caused a 30 percent rise in the number of apartments rented out
How much percent can we expect the price of rental apartments to rise after the law is enforced, if we know that we expect an additional rise in demand for rental apartments which will cause an additional 20 percent rise in the number of apartments rented out?
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