Figure 5.5 Figure 5.5 shows the market for apartments in Springfield.Recently, the government imposed a rent ceiling of $1000 per month.
-Refer to Figure 5.5.Suppose that instead of a rent ceiling, the government imposed a price floor of $2000 per month for apartments.What is the quantity of apartments demanded at the new price?

Question

Figure 5.5  Figure 5.5 shows the market for apartments in Springfield.Recently, the government imposed a rent ceiling of $1000 per month.
-Refer to Figure 5.5.Suppose that instead of a rent ceiling, the government imposed a price floor of $2000 per month for apartments.What is the quantity of apartments demanded at the new price?

Quizplus · Accepted Answer

At a price floor of $2000, the quantity of apartments demanded would decrease to where the demand curve intersects the price floor, which is at 200 apartments.

Figure 55 Figure 5