Which panel of Figure 3.3 represents the changes in the market for student housing when university enrollment increases and at the same time the university destroys several older residence halls and apartment buildings? Figure 3.3 Shifts of Supply and Demand

Question

Which panel of Figure 3.3 represents the changes in the market for student housing when university enrollment increases and at the same time the university destroys several older residence halls and apartment buildings?   Figure 3.3 Shifts of Supply and Demand

Quizplus · Accepted Answer

Panel C shows a decrease in the quantity supplied (shift of supply curve to the left) due to the destruction of older residence halls and apartment buildings. At the same time, there is an increase in demand (shift of demand curve to the right) due to the increase in university enrollment. This results in an increase in equilibrium price and an ambiguous effect on equilibrium quantity.

Which Panel of Figure 3