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The following table gives hypothetical data for the quantity of two-bedroom rental apartments demanded and supplied in Alviso, CA: Monthly Rent Quantity Demanded (thousands) Quantity
The following table gives hypothetical data for the quantity of two-bedroom rental apartments demanded and supplied in Alviso, CA: Monthly Rent Quantity Demanded (thousands) Quantity Supplied (thousands) $ 800 30 10 $1,000 25 14 $1,200 22 17 $1,400 19 19 $1,600 17 21 $1,800 15 22 1. Graph the demand curve, 2. Graph the supply curve. 3. Find the equilibrium price and quantity. 4. Explain briefly why a rent of $1,000 cannot be the equilibrium in this market. 5. Suppose an earthquake destroys a significant number of apartment buildings in Alviso but doesn't affect people's desire to live there. Illustrate on your graph the effects on equilibrium price and quantity
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