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28 Sep 2019
My textbook had the following question:
A law was passed forbidding tenants from divide their apartmentsand renting out the different portions.
We know these facts:
* The flexibility of the supply curve of rented apartments beforethe law was passed is 0.15
* Before the law was passed, there was a rise in the demand forrented apartments, and this rise in demand caused a 30 percent risein the number of apartments that were rented out.
* We expect an additional increase in the demand for rentedapartments, which will cause the number of rented apartments torise by an additional 20 percent.
By how much percentage can we expect the price of renting anapartment to rise by?
The answer is supposed to be âby more than 133.33 percentâ. I don'tunderstand how they arrived at this answer. Please explain. Thankyou.
My textbook had the following question:
A law was passed forbidding tenants from divide their apartmentsand renting out the different portions.
We know these facts:
* The flexibility of the supply curve of rented apartments beforethe law was passed is 0.15
* Before the law was passed, there was a rise in the demand forrented apartments, and this rise in demand caused a 30 percent risein the number of apartments that were rented out.
* We expect an additional increase in the demand for rentedapartments, which will cause the number of rented apartments torise by an additional 20 percent.
By how much percentage can we expect the price of renting anapartment to rise by?
The answer is supposed to be âby more than 133.33 percentâ. I don'tunderstand how they arrived at this answer. Please explain. Thankyou.
A law was passed forbidding tenants from divide their apartmentsand renting out the different portions.
We know these facts:
* The flexibility of the supply curve of rented apartments beforethe law was passed is 0.15
* Before the law was passed, there was a rise in the demand forrented apartments, and this rise in demand caused a 30 percent risein the number of apartments that were rented out.
* We expect an additional increase in the demand for rentedapartments, which will cause the number of rented apartments torise by an additional 20 percent.
By how much percentage can we expect the price of renting anapartment to rise by?
The answer is supposed to be âby more than 133.33 percentâ. I don'tunderstand how they arrived at this answer. Please explain. Thankyou.
manhokwe tawandaLv10
30 Sep 2019
