Suppose that the demand and supply schedules for rental apartments in the city of gotham are as given in the table below.
a. what is the market equilibrium rental price per month and the market equilibrium number of apartments demanded and supplied?
b. if the local government can enforce a rent-control law that sets the maximum monthly rent at $1,500, will there be a surplus or a shortage? of how many units? and how many units will actually be rented each month?
c. suppose that a new government is elected that wants to keep out the poor. it declares that the minimum rent that can be charged is $2,500 per month. if the government can enforce that price floor, will there be a surplus or a shortage? of how many units? and how many units will actually be rented each month?
d. suppose that the government wishes to decrease the market equilibrium monthly rent by increasing the supply of housing. assuming that demand remains unchanged, by how many units of housing would the government have to increase the supply of housing in order to get the market equilibrium rental price to fall to $1,500 per month? to $1,000 per month? to $500 per

c. Suppose that a new government is elected that wants to keep out the poor. It declares that the minimum rent that landlords can charge is $2,500 per month. If the government can enforce that price floor, will there be a surplus or a shortage?

-Surplus Correct

Of how many units?

-5,000 apartments per month

And how many units will actually be rented each month?

-10,000 apartments

d. Suppose that the government wishes to decrease the market equilibrium monthly rent by increasing the supply of housing. Assuming that demand remains unchanged, by how many additional units of housing would the government need to supply to get the market equilibrium rental price to fall to $1,500 per month?

-5,000 apartments

To $1,000 per month?

-10,000 apartments

To $500 per month?

-15,000 apartments

Explanation:

swatiupadhyay714 swatiupadhyay714 · Answer 2 · 2021-11-23T11:03:37+01:00

Demand and supply are the two forces that run the market and determine the production and consumption of the people in the economy. The production in the firm depends on the demand in the market and the supply in the market depends on the consumption of the people.

a. The market equilibrium rental price per month and the market equilibrium number of apartments demanded and supplied is:

Market equilibrium rental price = $ 2,000 correct.

Market equilibrium quantity = 12,500 apartments

b. If the local government can enforce a rent-control law that sets the maximum monthly rent at $1,500, there will be a shortage of 5,000 apartments per month. Each month the actual rented units will be 10,000 apartments.

c. Suppose that a new government is elected that wants to keep out the poor. It declares that the minimum rent that landlords can charge is $2,500 per month. If the government can enforce that price floor, there will be a surplus of 5,000 apartments per month. The actual rented units will be 10,000 apartments.

d. Suppose that the government wishes to decrease the market equilibrium monthly rent by increasing the supply of housing. Assuming that demand remains unchanged, the government has to increase the supply of housing in order to get the market equilibrium rental price to fall to $1,500 per month by 5,000 apartments.

To $1,000 per month?

-10,000 apartments

To $500 per month?

-15,000 apartments

To know more about the rental departments in the demand and supply, refer to the link below:

https://brainly.com/question/14769383