Original equilibrium and effect of price ceiling on market

Assume in downtown Chicago the equilibrium rent for two-bedroom apartment is $900 per month. The city council decides to place price ceiling on apartments and will not permit landlords to charge more than $700 per month. Draw this condition using a graph. Ensure that you show the original equilibrium and the effect of the price ceiling on the market. What will occur in this market?
There will be a shortage of apartments since quantity demanded (QD) is greater than quantity supplied (QS).

807_vs23.png

   Related Questions in Biology

  • Q : What is Voice Communications Voice

    Voice Communications: It is the communication via the Internet is the most advanced and newest technology nowadays. This technology was introduced in the mid of 90s that has raised the value and significance of Internet communication.

  • Q : What is Nostril What is Nostril ?

    What is Nostril? Briefly explain it.

  • Q : Diagonal | Crosswise Communication -

    This includes the horizontal flow of information as also that among persons at different levels who have no direct reporting relationships. This kind of communication is used to speed information flow to importing understanding. This kind of communication is used to speed information flow to impr

  • Q : Relation between thyroid and hypophysis

    Describe briefly the relation between thyroid and hypophysis?

  • Q : Function of vitellus Specify the

    Specify the function of vitellus within the vertebrate egg? Classify these eggs in accordance with the amount of vitellus within them?

  • Q : Regulation of the acid-basic

    How do kidneys perform the regulation of the acid-basic equilibrium of the body? How alkalosis and acidosis are respectively corrected by the kidneys?

  • Q : Family and Social Factor - Personality

    The development of the individual proceeds under the influence of many socializing forces and agencies, from nuclear family to more distant or global groupings. In order to understand the effects of a family on individual's personality, we have to understand the socialization process and

  • Q : Target organs - on which glucagon and

    Elaborate the target organs on which glucagon and insulin act?

  • Q : Cuboidal epithelium from columnar

    How dissimilar is the simple cuboidal epithelium from columnar epithelium? Where can such epithelia are found in the human body?

  • Q : What is Multimedia Technology

    Multimedia Technology: This technology applies interactive computer elements, like text, graphics, video, sound and animation, to transport a message. When you have a knack for computer work and are fascinated in digital media, read on to discover car

©TutorsGlobe All rights reserved 2022-2023.