Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

The rent control agency of New York City has found that aggregate demand is Q D = 1 6 0 - 8 P . Quantity

The rent control agency of New York City has found that aggregate demand is
QD=160-8P.
Quantity is measured in tens of thousands of apartments. Price, the monthly average rental rate, is measured in hundreds of dollars. The agency also noted that the increase in Q at lower P results from more three-person families coming into the city from Long Island and demanding apartments. The city's board of realtors acknowledges that this is a good demand estimate and has shown that supply is
QS=70+7P
If both the agency and the board are right about demand and supply, what is the free-market price?
The free-market price is $600.(Enter your response as an integer.)
What is the change in city population if the agency sets a maximum average monthly rent of $250, and all those who cannot find an apartment leave the city? Assume that on average three people live (or would have lived) in each apartment.
The city's population will decrease by people. (Enter your response as an integer.)
image text in transcribed

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Supply Chain Ethics Using CSR And Sustainability To Create Competitive Advantage

Authors: John Manners Bell

1st Edition

0749479450, 978-0749479459

More Books

Students also viewed these General Management questions