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6 July, 06:37

The town of snowville is concerned that its rental property market is overpriced. the demand for rental housing is p = 48 - 2q, while the supply of rental housing is p = 12 + q. if the town imposes a price ceiling of 16 dollars, and the quantity demand will be ___ while quantity supply will be ___.

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  1. 6 July, 10:03
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    For this case what you should do is to clear q in both equations with a price of p = 16 $

    We have then:

    For the demand

    p = 48 - 2q

    q = (48 - p) / 2

    q = (48 - 16) / 2

    q = 16

    For the supply:

    p = 12 + q

    q = p-12

    q = 16-12

    q = 4

    Answer:

    if the town imposes a price ceiling of 16 dollars, and the quantity demand will be 16 while quantity supply will be 4.
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