3) Suppose that Vancouver and Winnipeg have the following supply schedule for 2-bedroom apartments for rent....

Transcribed Image Text:

3) Suppose that Vancouver and Winnipeg have the following supply schedule for 2-bedroom apartments for rent. Price (per month) Quantity Supplied (Vancouver) Quantity Supplied (Winnipeg) $1,000 50,000 10,000 $3,000 70,000 30,000 $5,000 90,000 50,000 $7,000 110,000 70,000 a. As the price rises from $1,000 to $3,000, what is the price elasticity of supply for 2- bedroom apartments in Vancouver? What is the price elasticity of supply for 2-bedroom apartments in Winnipeg? (use the midpoint method) b. As the price rises from $5,000 to $7,000, what is the price elasticity of supply for 2- bedroom apartments in Vancouver? What is the price elasticity of supply for 2-bedroom apartments in Winnipeg? (use the midpoint method) c. Graph the supply curves for both Vancouver and Winnipeg. Do the supply curves look like you expected based off of your results to parts a. and b.? 3) Suppose that Vancouver and Winnipeg have the following supply schedule for 2-bedroom apartments for rent. Price (per month) Quantity Supplied (Vancouver) Quantity Supplied (Winnipeg) $1,000 50,000 10,000 $3,000 70,000 30,000 $5,000 90,000 50,000 $7,000 110,000 70,000 a. As the price rises from $1,000 to $3,000, what is the price elasticity of supply for 2- bedroom apartments in Vancouver? What is the price elasticity of supply for 2-bedroom apartments in Winnipeg? (use the midpoint method) b. As the price rises from $5,000 to $7,000, what is the price elasticity of supply for 2- bedroom apartments in Vancouver? What is the price elasticity of supply for 2-bedroom apartments in Winnipeg? (use the midpoint method) c. Graph the supply curves for both Vancouver and Winnipeg. Do the supply curves look like you expected based off of your results to parts a. and b.?

Answer rating: 100% (QA)

Price Elasticity of Supply for Apartments Vancouver Winnipeg Well calculate the price elasticity of ... View the full answer