Final answer:
To calculate how much students pay per month for rent, factor in the cost of utilities and the potential for repairs, and consider the percentage of student payments in the university's budget. Additionally, understanding the price elasticity of supply for housing can provide insight into the housing market and costs.
Step-by-step explanation:
To determine how much students pay per month for rent, we should consider the typical costs associated with housing such as rent payments, utilities like the power bill, possible repairs, and in some cases, the water bill. This financial aspect is crucial for students managing their overall expenses, including tuition and living costs. With a university's annual electricity expenditure around 10¹⁵ Joules, and assuming that student payments account for 40% of the total budget, we could infer the cost allocated for housing within the budget. Moreover, knowing the change in apartment supply when rent prices fluctuate, as per the Price Elasticity of Supply, can help us understand the market dynamics. For example, if the rent increases from $650 to $700 and the supplied units rise from 10,000 to 13,000, we can calculate the percentage increase in supply and gauge the price sensitivity, which is instrumental for understanding the costs students might incur.