(Solved): Suppose that the demand and supply schedules for rental apartments in the city of Gotham are as gi ...

Suppose that the demand and supply schedules for rental apartments in the city of Gotham are as given in the table below. a. What is the market equilibrium rental price per month and the market equilibrium number of apartments demanded and supplied? Market equilibrium rental price $$\$$$ per month Market equilibrium quantity apartments. b. If the municipal government can enforce a rent-control law that sets the maximum monthly rent at $$\$2,000$$, will there be a surplus or a shortage? Of how many units? apartments per month. How many units will actually be rented each month? apartments will be rented. c. Suppose that a new government wants to keep out the poor. It declares that the minimum allowable rent is $$\$3,000$$ per month. If the aovernment can enforce that price floor, will there be a surplus or a shortage? Of how many units? apartments per month. How many units will actually be rented each month? apartments will be rented. d. Start at the original (correct) equilibrium price and quantity in part (a). Suppose that the government wishes to decrease the market equilibrium monthly rent by increasing the supply of housing. Assuming that demand remains unchanged, by how many units of housing would the government have to increase the supply of housing in order to get the market equilibrium rental price to fall to $$\$2,000$$ per month? To $$\$1,500$$ per month? To $$\$1,000$$ per month? Fall to $$\$2,000$$ per month: units. Fall to $$\$1,500$$ per month: units. Fall to $$\$1,000$$ per month: units.