here on the 1 Ch 3 End of ch problem 5 p Help Save Exit Sub

here on the 1 Ch 3 End of ch problem (5 p... Help Save & Exit Submit Suppose that the demand and supply schedules for rental apartments in the city of Gotham are as given in the table below ints Monthly Rent 2,750 2,250 1.750 1,250 12,500 15,000 17,500 20,000 17,500 Print 10,000 7,500 Prex 1of1 Next

Solution

1) If the local government set the maximum monthly rent at $1750 there will be a total demand of $17,500 and total Supply of 12,500.

Hence there is a \"shortage\" of \"5000\" apartments.

2) Since the new government has set the price of the apartments at $2750 the demand for the apartments will be only 12,500 and the supply of the apartments will be 17,500.

There is an \"excess\" supply of \"5000\" apartments.

3) At the price of $2750, only 12,500 apartments will be rented.