The demand for apartments is P = 1200 - Q while the supply is P = Q

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The demand for apartments is P = 1200 - Q while the supply is P = Q units. The government imposes rent control at P = $300/ month. Suppose demand grows in the market to P = 1400 - Q.

a. How is excess demand affected by the growth in demand for apartments?

b. At what price would the government have to set the rent control to keep excess demand at the same level as prior to the growth in demand?

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Microeconomics and Behavior

ISBN: 978-0078021695

9th edition

Authors: Robert Frank

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Question Posted: Dec 12, 2014 10:18 AM

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The demand for apartments is P = 1200 - Q while the supply is P = Q

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a Under the original demand curve quantity demanded was Q 900 units and quantit...View the full answer

Microeconomics and Behavior

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