The table shows the demand supply schedules for oncampus hou

The table shows the demand supply schedules for on-campus housing. If the college puts a rent ceiling on rooms of $700 a month, rent is and the number of rooms rented is The on-campus housing market is

Solution

If the college puts a rent ceiling of $700 on rooms, rent is $700 per month and number of rooms rented is 4000 rooms.

The on campus housing market is facing excess supply as at this prce, supply is 5250 rooms while demand is 4000 rooms. There si excess supply of 1250 rooms.