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csps1a - $800_3,000 What is the quantity of apartments that...

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13 400 1000 1200 Additional Problem #1 Answers : Consumer and Producer Surplus The graph below shows the demand and supply of rental housing for Microtown. $/month S 800 600 200 D Quantity 0 1 2 3 4 5 6 (thousands/month) a) What is the equilibrium rent/month? __$600 ________; the total rent/month at the equilibrium quantity of rental units? __$1,800,000 ______; the consumer surplus? ____$900,000 ____; the producer surplus? ___$900,000 ____. b) What is the quantity of apartments that will be rented if a price ceiling is set at
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Unformatted text preview: $800? ___3,000 __. What is the quantity of apartments that will be rented if a price ceiling is set at $400? _2,000 __. What is the consumer surplus given this price ceiling? ____$400,000 ___; the producer surplus? ___$400,000 __; the dead weight loss? ____$200,000 ____; the search cost for rental? __$800,000 ___. Note : This problem may also be constructed with algebraic expressions for demand and supply as follows: Demand : P = 1200 – 200Q Supply : P = 200Q...
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