The following table gives hypothetical data for the, Ask an Expert

Economics

The following table gives hypothetical data for the quantity of two-bedroom rental apartments demanded and supplied in Peoria, Illinois:

Quantity	Quantity
Monthly	Demanded	Supplied
Rent	(thousands)	(thousands)
$800	30	10
$1,000	25	14
$1,200	22	17
$1,400	19	19
$1,600	17	21
$1,800	15	22

a. Graph the demand and supply curves.

b. Find the equilibrium price and quantity.

c. Explain briefly why a rent of $1,000 cannot be the equilibrium in this market.

d. Suppose a tornado destroys a significant number of apartment buildings in Peoria, but doesn't affect people's desire to live there. Illustrate on your graph the effects on equilibrium price and quantity.

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Microeconomics, Economics

Category:- Microeconomics
Reference No.:- M91639430

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