Question
In: Economics
Consider a college town where the initial price of rental apartments is $500 and the initial...
- Consider a college town where the initial price of rental apartments is $500 and the initial quantity is 3,000 apartments. The price elasticity of demand for apartments is 1.25, and the price elasticity of supply of apartments is 0.75.
- Use demand and supply curves to show the initial equilibrium, an label the equilibrium point a.
- Suppose that an increase in college enrollment is expected to increase the demand for apartments in the college town by 30 percent. Use your graph to show the effects of the increase in demand on the apartment market. Label the new equilibrium point b.
- Predict the effect of the increase in demand on the equilibrium price of apartments.
- Find the new equilibrium quantity given the new price.
Solutions
Rahul Sunny answered 2 years agoRelated Solutions
Consider the market for rental apartments. The price elasticity of demand for rental apartments is estimated...
Consider the market for rental apartments. The price
elasticity of demand for rental apartments is estimated to be
0.15
a. What impact would higher home prices have on the
market price and quantity of rental apartments?
b. What would happen to the revenue going to landlords?
Identify the revenue going to landlords before and after the
increase in home prices using supply-and-demand
diagrams..
Consider the market for single bedroom rental apartments in Hobart in 2019 with an upward sloping...
Consider the market for single bedroom rental apartments in
Hobart in 2019 with an upward sloping supply curve and downward
sloping demand curve. The current equilibrium price of single
bedroom rental apartments is $350 per week with 15,000
a. Draw a diagram showing the market for single bedroom rental
apartments in Inner Hobart. Include an appropriate title and label
the demand curve, supply curve, equilibrium price and quantity.
b. Consider if the government introduces a legally enforced
price ceiling of...
Consider the market for single bedroom rental apartments in Hobart in 2019 with an upward sloping...
Consider the market for single bedroom rental apartments in
Hobart in 2019 with an upward sloping supply curve and downward
sloping demand curve. The current equilibrium price of single
bedroom rental apartments is $350 per week with 15,000
a. Draw a diagram showing the market for single bedroom rental
apartments in Inner Hobart. Include an appropriate title and label
the demand curve, supply curve, equilibrium price and quantity.
b. Consider if the government introduces a legally enforced
price ceiling of...
Using a college cost estimator, the average of campus rental at George Town is approximately $547...
Using a college cost estimator, the average of campus rental at
George Town is approximately $547 per month. Suppose these rates
are roughly normal with a standard deviation of $100. Say you take
a random sample of 25 students living off campus.
1. What would be the mean and standard error
for the distribution of the sample mean?
2. What is the probability that the sample mean
would be at least $600?
3. What is the probability that the rent...
Suppose that the demand and supply schedules for rental apartments in the city of Gotham are...
Suppose that the demand and supply schedules for rental
apartments in the city of Gotham are as given in the table
below.
Monthly Rent $: 3,000 2,500 2,000 1,500 1,000
Apartments Demanded: 10,000 12,500 15,000 17,500 20,000
Apartments Supplied: 15,000 12,500 10,000 7,500 5,000
a. What is the market equilibrium rental price per month and the
market equilibrium number of apartments demanded and supplied?
Market equilibrium rental price is: _____ (per month). Market
equilibrium quantity is:_____ (apartments).
b. If the...
Consider a case where the initial price of a pack of cigarette is $1.50 per pack...
Consider a case where the initial price of a pack of cigarette
is $1.50 per pack and the quantity sold and bought is 200,000 packs
per day. Assuming an elasticity of demand of -0.85 and elasticity
of supply of 2.5,
Calculate the tax revenue and excess burden if the excise tax
on each pack of cigarette is $1.50.
Suppose the elasticity of demand is -0.45 and the elasticity of
supply is 1.05, what is the incidence of the tax on...
Highsmith Rental Company purchased an apartment building early in 2021. There are 15 apartments in the...
Highsmith Rental Company purchased an apartment building early
in 2021. There are 15 apartments in the building and each is
furnished with major kitchen appliances. The company has decided to
use the group depreciation method for the appliances. The following
data are available:
Appliance
Cost
Residual Value
Service Life
(in Years)
Stoves
$
43,000
$
4,000
6
Refrigerators
38,000
6,000
5
Dishwashers
36,000
5,000
4
In 2024, two new refrigerators costing $4,100 were purchased for
cash. In that same year,...
Highsmith Rental Company purchased an apartment building early in 2018. There are 20 apartments in the...
Highsmith Rental
Company purchased an apartment building early in 2018. There are 20
apartments in the building and each is furnished with major kitchen
appliances. The company has decided to use the group depreciation
method for the appliances. The following data are
available:
Appliance
Cost
Residual Value
Service
Life
(in Years)
Stoves
$
55,000
$
4,000
6
Refrigerators
50,000
3,000
5
Dishwashers
48,000
2,000
4
In 2021, two new refrigerators costing $4,700 were purchased for
cash. The old refrigerators, which...
Highsmith Rental Company purchased an apartment building early in 2021. There are 20 apartments in the...
Highsmith Rental Company purchased an apartment building early
in 2021. There are 20 apartments in the building and each is
furnished with major kitchen appliances. The company has decided to
use the group depreciation method for the appliances. The following
data are available:
Appliance
Cost
Residual Value
Service Life
(in Years)
Stoves
$
45,000
$
3,000
6
Refrigerators
40,000
7,000
5
Dishwashers
38,000
6,000
4
In 2024, four new refrigerators costing $4,200 were purchased for
cash. In that same year,...
Consider a fictional price index, the College Student Price Index (CSPI), based on a typical college...
Consider a fictional price index, the College Student Price
Index (CSPI), based on a typical college student’s annual
purchases. Suppose the following table shows information on the
market basket for the CSPI and the prices of each of the goods in
2017, 2018, and 2019.
The cost of each item in the basket and the total cost of the
basket are shown for 2017.
Perform these same calculations for 2018 and 2019, and enter the
results in the following table....
ADVERTISEMENT
ADVERTISEMENT
Latest Questions
- You measure the following quantities as A = 1.0 m ± 0.2 m, B = 2.0...
- Froya Fabrikker A/S of Bergen, Norway, is a small company that manufactures specialty heavy equipment for...
- When the electricity goes out on your campus, a backup source powers the servers that handle...
- I am having trouble with my assignment and getting compile errors on the following code. The...
- Can someone show me how to write a Haskell function using snd on a list of...
- Please do in java Program 3: Give a baby $5,000! Did you know that, over the...
- This is all one question, thank you so much in advance! You must evaluate the purchase...
ADVERTISEMENT