Question

+ - c math.com/StudentPlayerTestastestid-2030064878.centerwin-yes 1A003 Principles of Microeconomics Quiz: MyLab Economics Quiz 3 Time Ram this Question: 1 pt 10 of 15 complete The table shows the demand and supply schedules for on-campus housing the college strictly enforced a renteling of $275 a month, what is the rent paid, how many rooms are rented, and is the on-campus housing market efficient? the college puts a widly enforced rent ceiling on rooms of 275 a month, rentis and the number of rooms rented is the college strictly forces the renteling of $275 a month, the on-campus housing market is because Ancient the renting has no afect on the number of rooms rented B. eficient with the rent cling more rooms are rented c ent with the rent cling fewer rooms are rented D eficient therent coming does not change the number of rooms rented Ok to select your answers

Answer 1

The equilibrium is at a price of $ 300 and quantity demanded at this price is 6000 units.

The price ceiling is set at a price below the equilibrium price thus it is a binding price.

Therefore the quantity demanded will be more than the quantity supplied. That is shortage will occur.

At price ceiling quantity demanded = 6,750

Quantity supplied = 6,000

The supply curve is perfectly inelastic that is for every price quantity supplied is constant.

Rent is $ 275 and the number of rooms rented is 6,000.

The college strictly enforces price ceiling at a price of $ 275 a month, on the campus housing market is efficient because it does not change the number of rooms rented.

It is efficient since it does not increases the dead weight loss.