Suppose a city is considering placing a ceiling on rent for one-bedroom apartments, at $1,000 per apartment.
Demand is given by:
P = 1700 - 20Q
and supply by:
P = 80Q + 200,
where Q is measured in thousands of apartments.
Instructions: Round your answers to the nearest whole number.
(a) The market equilibrium rent is $ , and the equilibrium quantity is thousand apartments.
(b) With the price ceiling, the rent is $ per apartment, and the quantity rented is thousand apartments.
(c) The excess demand for apartments with the price ceiling is .

(a) The market equilibrium rent is $1,400 and the equilibrium quantity is 15 thousand apartments.

(b) With the price ceiling, the rent is $1,000 per apartment and the quantity rented is 10 thousand apartments.

(c) The excess demand for apartments with the price ceiling is 20

Explanation:

(a) At equilibrium, demand function equals supply function

1700 - 20Q = 80Q + 200

1700 - 200 = 80Q + 20Q

100Q = 1500

Q = 1500/100 = 15

Substitute the value of Q in the demand function

P = 1700 - 20Q = 1700 - 20(15) = 1700 - 300 = 1400

Equilibrium rent = $1,400

Equilibrium quantity is 15 thousand apartments

(b) Rent with price ceiling is $1,000 per apartment

Substitute the value of P in the supply function

P = 80Q + 200

1000 = 80Q + 200

1000 - 200 = 80Q

80Q = 800

Q = 800/80 = 10

Quantity rented is 10 thousand apartments

(c) Quantity demanded (Q) with price ceiling = (1700 - P)/20

P = 1000

Q = (1700 - 1000)/20 = 700/20 = 35

Excess demand = 35 - 15 = 20

As Elliot wants to open a checking account and is searching for best option at different bank which is near to his house. The possible benefits or fees that may differ among the checking accounts may include  

- A minimum amount of money to open an account.

- The cost/charges for a monthly statement.  

- Service charges for the local or international transaction.

- Monthly withdraw limitation, this may differ as per Elliot's age.

- An interest rate or overdraft fee charged from Elliot.

Once Elliot finds the best option he may open the checking account in the bank that suits him.