Question 9 - If the college puts a rent ceiling on rooms of 600 a month, rent is

Question

Question 9 - If the college puts a rent ceiling on rooms of 600 a month, rent is ____ and the number of

Chamberlain University × Week 4: MEL Homework Do Homework-Pamela Harris × https://wwww.mathxl.com/Student/ aspx?homeworkld Q Search Principles of Economics Pamela Harris 11/17/17 12:01 PM Homework: Week 4 Homework 35 pts Save Score: 0 of 1 pt 9 of 35 (14 complete) HW Score: 36.19%, 12.67 of 35 pts Chapter Problem 4 Question Help * The table shows the demand and supply schedules for on-campus housing. If the oolege puts a rent ceiling on rooms of $600 a month, rent is and the number of rooms rented is Quantity demanded Quantity supplied Rent (dollars per month) 500 550 600 650 700 750 (rooms) 7,500 6,750 6,000 5.250 4,500 3.750 6,750 6,750 6,750 6,750 6,750 6,750 Enter your answer in the edit fields and then click Check Answer part Clear All Check Answer Type here to search 2:01 PM 11/17/20174

Explanation / Answer

Answer
the price ceiling is effective when the price is below the equilibrium price.
the equilibrium is at quantity demand equal to quantity supplied
where
Q=6750
P=550
The price ceiling is not binding because it is not below the equilibrium price.
so the market will clear at market equilibrium where Q=6750 and P=550.

rent=$550
room rented=6750

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