Question

nn wants to rent an apartment and she finds that apartments in her town are renting at a price lower than she is willing to pay. However, she finds it very difficult to find an apartment to rent. Finally, after six months of searching, she finds an apartment but she has to pay an additional $1,000 to have the locks changed. The best way to describe Ann's experience is that she has just experienced the effects an inelastic demand apartments bad luck with no market explanation a price ceiling an elastic demand for apartments O a price floor

Answer 1

Answer: an elastic demand for apartment

Explanation:

Elasticity of demand is the degree of responsiveness of demand to changes in price of goods and services. It's said to be elastic when a change in price leads to a more proportionate change in demand that is the consumer is willing to purchase more goods as a result of fall in price and less goods as a result of increase in price.

In the above scenario the Consumers are willing to rent all the apartments available at a low price and that is why Nn could not get an apartment even though the prices are lower than her budget.

It's not an inelastic demand because there is always little or no change in demand in an inelastic and it's not a market ceiling nor a price floor because the prices are not fixed by non market forces like the goverments and it's a situation that is economically explanable.