Question

Looking at the graph above

a. How many low skilled workers are unemployed when the minimum wage is $8

b. How many workers are hired when the wage is $7

c. How many low skilled workers are unemployed when the minimum wage is $6

Imagine that the community you live in decides to enact a price control of $700 permonth on every one-bedroom apartment.

Rent	quantity demanded	quantity supplied
600	700	240
700	550	320
800	400	400
900	250	480
1,000	100	560

1. Using the following table, determine the market price and equilibrium quantity without the price control.

2. How many one-bedroom apartments will be rented after the price-control law is passed?

Answer 1

First question is incomplete as graph is missing.

Second question with table is answered.

1.

Equilibrium occurs at the point where quantity demanded equals quantity supplied

In the given table, this occurs at Rent = $800 and Q = 400 apartments

2.

If the price control law of $700 is passed (as given in above question part C), then apartment supplied would be 320 while demanded would be 550

Thus, apartments rented = 320 apartments