Suppose there are 1000 one-bedroom apartments in a small town. Assume that supply is fixed. The table below gives information about demand.

Question 1
Suppose there are 1000 one-bedroom apartments in a small town.  Assume that supply is fixed.  The table below gives information about demand.
Price ($ per month) Demand (Apartment Units)
500 1600
600 1400
700 1200
800 1000
900 800
1000 600
1200 400
a) What is the equilibrium rental price?
b) Suppose 200 new one-bedroom apartments are constructed.  What happens to the equilibrium rent?  Be sure to explain.  Illustrate the change in a diagram.
c) Suppose that more people move into town, increasing the demand by 200 units at each price.  What is the new equilibrium price? (assume the supply remains at 1200)
Click Here For More Details on How to Work on this Paper......
Need a Professional Writer to Work on this Paper? Click Here and Get this Essay Done ………