Monthly Rent Apartments Demanded Apartments Supplied $2,500 10,000 15,000 2,000
ID: 1240907 • Letter: M
Question
Monthly
Rent
Apartments
Demanded
Apartments
Supplied
$2,500
10,000
15,000
2,000
12,500
12,500
1,500
15,000
10,000
1,000
17,500
7,500
500
20,000
5,000
Start at the original (correct) equilibrium price and quantity in part (a).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 $1500 per month? To $1000 per month? To $500 per month?
Fall to $1500 per month: units
Fall to $1000 per month: units
Fall to $500 per month: units
Monthly
Rent
Apartments
Demanded
Apartments
Supplied
$2,500
10,000
15,000
2,000
12,500
12,500
1,500
15,000
10,000
1,000
17,500
7,500
500
20,000
5,000
Explanation / Answer
Fall to $1500 per month = 5000 Fall to $1000 per month = 10000 Fall to $500 per month = 15000 please rate
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