Rent (doltars per month) The graph shows the market for apartments in Lynchburg,

Question

Rent (doltars per month) The graph shows the market for apartments in Lynchburg, Virginia d the city government imposes a rent celing of $1,200 a month, what is the rent and how many apartments are rented in Lynchburg. Virginia? Remember that the quantity given on the -axis is in thousands of apartments The rentas amonth and apartments a month are rented lf ablack marketdevelops.he black market rent may be as high as S amont, Quantty housands of apatms Enter your answer in each of the answer boxes Break Backspace insert Hom P Down Delete End

Explanation / Answer

The rent is $1,200 a month and 3 thousands apartments a month are rented.

The rent will be equal to rent ceiling meaning the price can not go beyond this and the number of apartments which are rented can be calculated by the supply curve.

If a black market develops the black market rent may be as high as $1600 a month. The black Market rent will be derived at the intersection of demand and supply of apartments.

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