Suppose that the market price of new housing is 100000 in


Suppose that the market price of new housing is $100,000 in Las Vegas, and local government officials modify regulations which increase the cost of building new homes. The higher costs cause supply to drop by 18 percent, the price elasticity of demand is 1.5 and the price elasticity of supply is if 3.0. The resulting equilibrium price of new housing in Las Vegas is:

A) $96,000

B) $98,000

C) $100,000

D) $104,000

E) None of the above

Request for Solution File

Ask an Expert for Answer!!
Microeconomics: Suppose that the market price of new housing is 100000 in
Reference No:- TGS0938637

Expected delivery within 24 Hours