Suppose that there are originally 5 units in the market and that 1 of them is turned into a condominium.

1. Suppose that person A decides to buy the condominium. What will be the highest price at which the demand for apartments will equal the supply of apartments? What will be the lowest price? Enter your answer in column A, in the table. Then calculate the equilibrium prices of apartments if B, C, ....decide to buy the condominium.

Person	A	B	C	D	E	F	G	H
High price
Low price

Suppose that there were two people at each reservation price and 20 apartments. What is the highest at which demand equals supply? ____ Suppose that one of the apartments was turned into a condominium. Is that price still an equilibrium price? _____________