Question

Midterm Exam Version 22. Surpose the figure represents the market for suare feet of rental space in a certain neighborhood font is from at $10 per square foot, what will be the result? Fall 2009 a) A surplus of 22 thousand square feet b) A shortage of 22 thousand square feet c) Equilibrium of 22 thousand square feet d) A shortage of 11 thousand square feet. 23. If no one other than buyers and sellers are affected, what is total surplus in this market? a) $264,000 b) 588,000 c) $132,000 There is not enough information to answer the question

Answer 1

question 3- the total surplus in the market will be 264000$ because the rent is paid on 10$ but the rent should be paid 16$ to be in equilibrium