Macroeconomics 6th Edition by Robert Hall,Marc Lieberman

تمرين 5

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