Suppose that the market for apartments in New York City is described by the following equations;Demand: P = 6000 ? 2Q;Supply: P = 1000 + 0.5Q;Where P is the rental price per month and Q is the quantity of apartments in thousands.;a. What is the equilibrium price and quantity?;b. Show graphically. Be sure to label all axes, intercepts and curves.;c. Suppose that the New York City Council decides to impose a price ceiling of $1500 per month for each apartment. What is the result in the market? What is the quantity demanded? What is the quantity supplied? What is the amount of the surplus or shortage?
Paper#27924 | Written in 18-Jul-2015Price : $25