Figure 4-10
Figure 4-10 shows the market for apartments in Bay City. Recently, the government imposed a rent ceiling at R₀.
-Refer to Figure 4-10.Suppose that instead of a price ceiling,the government imposed a price floor of R₁.What is the quantity of apartments demanded at the new price?

Question

Figure 4-10
  Figure 4-10 shows the market for apartments in Bay City. Recently, the government imposed a rent ceiling at R₀.
-Refer to Figure 4-10.Suppose that instead of a price ceiling,the government imposed a price floor of R₁.What is the quantity of apartments demanded at the new price?

Quizplus · Accepted Answer

At a price floor of R₁, which is above the equilibrium price, the quantity of apartments demanded would be Q₁, as it is the quantity corresponding to the higher price on the demand curve.

Figure 4-10 Figure 4-10 Shows the Market for Apartments in Apartments