Questions: The table contains the demand and supply schedule for apartments in a city. Suppose the city council feels that the equilibrium rent is too high and imposes a price ceiling of 750/month. Rent/month Quantity demanded Quantity supplied 1,750 300 4,800 1,500 600 2,400 1,250 1,200 1,200 1,000 2,400 600 750 4,800 300 The price ceiling results in a surplus. shortage.
Transcript text: The table contains the demand and supply schedule for apartments in a city. Suppose the city council feels that the equilibrium rent is too high and imposes a price ceiling of $\$ 750 /$ month.
\begin{tabular}{|c|c|c|}
\hline Rent/month & Quantity demanded & Quantity supplied \\
\hline$\$ 1,750$ & 300 & 4,800 \\
\hline$\$ 1,500$ & 600 & 2,400 \\
\hline$\$ 1,250$ & 1,200 & 1,200 \\
\hline$\$ 1,000$ & 2,400 & 600 \\
$\$ 750$ & 4,800 & 300 \\
\hline
\end{tabular}
The price ceiling results in a
$\square$
surplus.
shortage.
Solution
Was this solution helpful?
Questions asked by other users
Answered
Answered
