Consider the rental market for 1-bedroom apartments in Langley. For a typical month, Demand and supply are given by…

Question:

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Consider the rental market for 1-bedroom apartments in Langley. For a typical month, Demand and supply are given by the

following equations where quantity is measured in thousands:

P=3200-2 QD

P = 400+2QS

a. 3 pts. Find the equilibrium rent (price) and quantity for 1-bedroom apartments in Langley.

b. 2 pts. Graph the Demand and supply curves for this market given the above equations and show the equilibrium

price and quantity on your diagram. Curves must have correct y-intercepts and labelling to get full credit.

Expert Answer:

Answer rating: 100% (QA)

Given that Demand Equation P 3200 2Q D Supply Equation P 400 2Q S a To compute the equilibrium rent

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