1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
laila [671]
3 years ago
15

Suppose that the demand and supply schedules for rental apartments in the city of Gotham are as given

Business
1 answer:
denis-greek [22]3 years ago
3 0

Answer:

a) Equliibrium Price: 2,000,

b) Shortage, 5,000  units, 10,000 units actually rented

c) Surplus, 5,000 units, 10,000 units actually rented

Explanation:

The demand and supply schedules for rental apartments in the city of Gotham are given as:

Monthly Rent         Apartments Demanded            Apartments Supplied

2500                                 10,000                                           15,000

2000                                 12,500                                           12,500

1500                                  15,000                                           10,000

1000                                  17,500                                             7,500

500                                  20,000                                             5,000

a) At equilibrium price, number of apartment demanded equals number of apartment supplied. From the table, the equilibrium price is $2,000.

b)   If the local government can enforce a rent-control law that sets the maximum monthly rent at $1500, then number of apartments supplied is 10,000. and the number of apartments demanded is 15,000.

This means there is going to be a shortage of 15,00-10,000=5,000.

The number of units that is actually rented is 10,000

c) if  a new government declares that the minimum rent that can be charged is $2500 per month, then , the apartments supplied at this price is15,000 units and the apartment demanded at this price is 10,000 units. Since supply outweighs demand, there is going to be a surplus of 15,000-10,000=5,000 units.

The number of units that is actually rented each month refers to the effective demand, which is 10,000

You might be interested in
Sudoku Company issues 17,000 shares of $8 par value common stock in exchange for land and a building. The land is valued at $230
steposvetlana [31]

Answer:

Debit Land for $230,000

Debit Building for $372,000

Credit Common Stock (w.1) for $136,000

Credit Paid in capital in excess of per value (w.2)  for $466,000

Explanation:

The journal entry will look as follows:

<u>Account Name                                                Dr ($)                  Cr ($)           </u>

Land                                                             230,000

Building                                                        372,000

Common Stock (w.1)                                                                136,000

Paid in capital in excess of per value (w.2)                           466,000

<u><em>(To record issuance of stock in exchange for the land and building.)         </em></u>

Workings:

w.1: Common stock = Number of shares issued * Price per share = 17,000 * $8 = $136,000

w.2: Paid in capital in excess of per value = Value of land + Value of building - Common stock = $230,000 + $372,000 - $136,000 = $466,000

4 0
3 years ago
The notes to a recent annual report from Weebok Corporation indicated that the company acquired another company, Sport Shoes, In
navik [9.2K]

Answer:

$221,500

Explanation:

The computation of the amount of the goodwill is shown below:

Goodwill = Acquiring value - fair market value of all assets

where,

Acquiring value = $502,000

And, the fair market value of all assets is

= Account receivable market value + inventory market value + fixed assets market value + other assets market value

= $35,000 + $183,000 + $46,500 + $16,000

= $280,500

So, the goodwill is

= $502,000 - $280,500

= $221,500

3 0
3 years ago
Inventory records for Marvin Company revealed the following: Date Num of units unit cost Mar. 1 Beginning Inventory 1000 7.20 Ma
swat32

Answer:

Ending inventory= $5,040

Explanation:

Giving the following information:

Beginning Inventory= 1000 units for  $7.20

Mar. 10: Purchase= 600 units for $7.25

Mar. 16: Purchase= 800 units for $7.30

Mar. 23: Purchase= 600 units for  $7.35

Marvin sold 2,300 units.

Under the LIFO inventory method, the ending inventory cost is calculated using the first units incorporated to inventory.

Ending inventory in units= total units - units sold

Ending inventory in units= 3,000 - 2,300= 700 units

Ending inventory= 700*7.2= $5,040

8 0
3 years ago
Which of the following statements about GDP (gross domestic product) is TRUE?
nasty-shy [4]

Answer:

a)     GDP measures the market value of final goods and services produced within a country.

Explanation:

Gross Domestic Product{ GDP} is the total market value of all the finished goods produced within the boundaries of a country at a specific time.  GDP takes into account all products and services regardless of who produces them, be it locals or foreigners. In short, GDP is a measure of all domestic productions.

Economist uses GDP as a scorecard of a country's economic status. They use it to determine the growth rate of an economy and its size.

Investors and business people will use GDP in the decision-making process. They will want to invest in industries or countries that are growing. A steady rise in GDP signifies that the economy is doing well and growing. A decrease in GDP will indicate a recession.

3 0
3 years ago
Why do people tend to eat more at all-you-can-eat buffet restaurants than at restaurants where each item is purchased separately
harkovskaia [24]
A. is the answer.............
3 0
3 years ago
Other questions:
  • Michelle symonds suggested a set of seven deadly sins of project management, that is, the common mistakes that companies commit
    12·2 answers
  • Which was not a response taken during the hoover administration in an attempt to turn the economy around?
    10·1 answer
  • Suppose that you are a big fan of the Harry Potter books. You would love to own a copy of the very first printing of the first​
    6·1 answer
  • Automatic stabilizers create ________ during recessions from increased government spending on welfare and unemployment insurance
    10·1 answer
  • Say I have a wallet that contained either a $2 bill or a $20 bill (with equal likelihood), but I don’t know which one. I add a $
    13·1 answer
  • Jeff is a top manager at a textile factory. He is developing a crisis plan in the event that the company has a toxic spill or ac
    8·1 answer
  • Which of the following statements about buying centers is true?
    12·1 answer
  • Companies that have preferred stock outstanding promise to pay a stated dividend for an infinite period. Preferred stock is trea
    11·1 answer
  • Administrative:
    13·1 answer
  • Typically the consumer price index (cpi) is calculated by checking the prices of?
    11·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!