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Consider the Figure Above

Question 1

Multiple Choice

  Consider the figure above.If the demand for units increases,what would happen in equilibrium,holding everything else constant? A) Market rent would decrease; equilibrium occupancy would decrease B) Market rent would decrease; equilibrium occupancy would increase C) Market rent would increase; equilibrium occupancy would decrease D) Market rent would increase; equilibrium occupancy would increase Consider the figure above.If the demand for units increases,what would happen in equilibrium,holding everything else constant?


A) Market rent would decrease; equilibrium occupancy would decrease
B) Market rent would decrease; equilibrium occupancy would increase
C) Market rent would increase; equilibrium occupancy would decrease
D) Market rent would increase; equilibrium occupancy would increase

Correct Answer:

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