Purchase Solution

Excess Demand for Apartments with a Price Ceiling

Not what you're looking for?

Ask Custom Question

Recent increases in rents have caused the citizens of Elmville to vote for a rent ceiling of $1200. Assuming all rental units in Elmville are identical and the supply and demand for rental units are given by

Qs = -1000 + 20P

Qd = 50000 - 10P

What will be the excess demand for apartments once the price ceiling is implemented?

Purchase this Solution
Solution Summary

This solution addresses the excess demand question and provides all calculations.

Purchase this Solution
Free BrainMass Quizzes
Pricing Strategies

Discussion about various pricing techniques of profit-seeking firms.

Economics, Basic Concepts, Demand-Supply-Equilibrium

The quiz tests the basic concepts of demand, supply, and equilibrium in a free market.

Basics of Economics

Quiz will help you to review some basics of microeconomics and macroeconomics which are often not understood.

Elementary Microeconomics

This quiz reviews the basic concept of supply and demand analysis.

Economic Issues and Concepts

This quiz provides a review of the basic microeconomic concepts. Students can test their understanding of major economic issues.

View More Free Quizzes
Related BrainMass Solutions

  • Excess demand in an apartment market with a rent ceiling

    This solution shows how to calculate the excess demand for apartments in a market where there is a rent ceiling.

  • Access Demand for Apartments and Profit Maximizing Price

    405277 Access Demand for Apartments and Profit Maximizing Price 1. Recent increases in rents has lead the citizens of Elmville to vote in a rent ceiling of $1200.

  • price ceiling

    We can plot the price ceiling regulated by the government at $800 in the graph. It seems that at this price level, the demand for apartments will increase to 60,000, while the supply will drop to 40,000. There is then a excess demand of 20,000.

  • Price ceiling and floor in a market

    This is a short term consideration. The long term consideration is the excess of supply in a floor, the excess of demand in a ceiling.

  • Applications of Demand and Supply: Various Questions

    Which is likely to be more elastic—the demand for orange juice or the demand for a particular brand of orange juice? 1- A price ceiling is a price set by the government, above which the product cannot be sold.

  • Determining the equilibrium rental/quantity of apartments

    a.If the agency is correct about demand, what is the short run competitive price for rental apartments in this market? What is the price elasticity of demand?

  • Effect of price ceiling on appartment supply and demand

    172535 Effect of price ceiling on an apartment's supply and demand What happens in the market for apartments when the government institutes a price ceiling that is lower than the market price?

  • Supply and Demand Simulation

    With fewer tenants for the apartments, the results in a decrease in the demand for and the supply of apartments; ultimately, both the demand curve and the supply curve shift to the left.

  • Price Ceiling or Price Floor

    155171 Price Ceiling or Price Floor Can you please provide an example of the market where government has imposed a price ceiling or a price floor and use demand and supply analysis to explain the consequence on that market.

View More Related Solutions