Question

Suppose that the demand and supply schedules for rental apartments in the city of Gotham are as given in the table below.Rent Demand Supply2,500.00 10,000 15,0002,000.00 12,500 12,5001,500.00 15,000 10,0001,000.00 17,500 7,500500.00 20,000 5,0001. What is the market equilibrium rental price per month and the market equilibrium number of apartments demanded and supplied?

Answer 1

Rental expense = $2,000

Demanded and supplies = 12,500

Step-by-step explanation:

As we see that

Market equilibrium is that point in which the demand and the supplies are equal to each other.

So, at the rental expense per month of $2,000

The equilibrium number of apartments demanded and supplied is 12,500 as the demanded and the supplies are equal so it would be a market equilibrium.

So we considered the information which is mentioned in the question