4.5 Due to a recession that lowered incomes, the 2008 market prices for last-minute rentals of U.S....
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4.5 Due to a recession that lowered incomes, the 2008 market prices for last-minute rentals of U.S. beachfront properties were lower than usual. Suppose that the inverse demand function for renting a beachfront property in Ocean City, New Jersey, during the first week of August is p = 1,000 - Q + Y/20, where Y is the median annual income of the people involved in this market, Q is quantity, and p is the rental price. The inverse supply function is p = Q/2 + Y/40.
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