Question

The following table shows the supply and demand of apartments in a city.

Monthly Rent	Quantity Demanded	Quantity offered
300	130000	35000
350	115000	37000
400	100000	41000
450	80000	45000
500	72000	52000
550	60000	60000
600	55000	70000
650	48000	75000

a)      The balance income is _________________.

b)      The number of apartments in balance is __________________.

c)       If a rent of $ 400 is established, it would cause _______________of ____________ apartments.
               (Shortage or Excess)

d)      If a price is established, $ 600 would cause__________________ of ______________ apartments. (Shortage or Excess)

e)      If a rent of $ 350 is established, it would cause _______________of ____________ apartments. (Shortage or Excess)

f)        If a price is established, $ 650 would cause __________________ of ______________ apartments. (Shortage or Excess)

Answer 1

When quantity demand=quantity offered then income is balance

a) The balance income is $550

b) The number of apartments in balance is 60000

c) If a rent of $400 is established, it would cause shortage of apartment ( as quantity demanded(100000)>quantity offered(4100))

d) If a price is established, $600 would cause excess of apartment ( As quantity offered(70000)>quantity demanded(55000))

e) If a ren of $350 is established, it would cause shortage of apartment ( As quantity demanded(11500)>quantity offered(37000))

f) If a price is established, $650 would cause an excess of the apartment ( As quantity offered (75000)>quantiyy demanded(48000)).