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rent support that sets the minimum price

Rent support that sets the minimum price

Use the following supply and demand curve for rental units in the town of Brooksville to answer questions 1 through 10.

1. What is the equilibrium rental price? 300
2. What is the equilibrium quantity of rental units?1800
3. What is the excess supply when rent is $350? 500
4. What is the excess demand when rent is $100? 2000
5. At what price is there an excess demand of 500? 250
6. At what price is there an excess supply of 1000? 400
7. Which of the following would cause a shortage? C. A rent control law that sets the maximum rental price at $200
8. Which of the following would cause a surplus? D. A rent support that sets the minimum price at $400
9. How many vacant rental units are there when there’s a price floor of $400?

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Uploaded by : Gordon Patel

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