The demand for apartments in Halifax can be written as Q^D = 4400 - 2P and the supply of two-bedroom apartments can be written as Q^S = -400 + P, where the price is measured in dollars per apartment and the quantity is the number of apartments.

a. [5 points] If the price is $2000 per apartment, how many apartments are demanded, and how many are supplied? How many would be rented? Is there a surplus or a shortage? Would there be pressure on the price to rise or fall? Explain.

[5 points] If the price is $1200 per apartment, how many apartments are demanded, and how many are supplied? How many would be rented? Is there a surplus or a shortage? Would there be pressure on the price to rise or fall? Explain.

c. [5 points] Solve for the equilibrium price and quantity, showing your work.

d. [5 points] Suppose that the return of students to campus causes a rise in demand for apartments, with a new demand function of Q^D = 5600 - 2P. Solve for the new equilibrium price and quantity. Explain in words how the market moves from the initial equilibrium in (c) to the new equilibrium.