Question

Consider the market for rental apartments in the city of Ann Arbor. What factors might affect the demand for rental apartments in this market?

1) Changes in population
2) Changes in income levels
3) Changes in interest rates
4) Changes in government policies

Answer 1

Changes in population, income levels, interest rates, and government policies can affect the demand for rental apartments in the market of Ann Arbor.

Step-by-step explanation:

The factors that might affect the demand for rental apartments in the market of Ann Arbor are:

1. Changes in population: An increase in population would increase the demand for rental apartments as more people will need housing.
2. Changes in income levels: As income levels rise, people may have more disposable income to spend on better quality rental apartments.
3. Changes in interest rates: Higher interest rates may discourage people from buying houses, leading to an increase in demand for rental apartments.
4. Changes in government policies: Government policies like rent control can directly impact the rental housing market by regulating prices and limiting the supply of rental apartments.