csps1a - $800? ___3,000 __. What is the quantity of...

Info iconThis preview shows page 1. Sign up to view the full content.

View Full Document Right Arrow Icon
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
Background image of page 1
This is the end of the preview. Sign up to access the rest of the document.

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...
View Full Document

This note was uploaded on 10/26/2009 for the course ECON 180-004-20 taught by Professor Bresnock during the Fall '09 term at UCLA.

Ask a homework question - tutors are online