Consider the following table:
 
Price	Quantity Demanded	Quantity Supplied
$1,600
30
19
$1,800
24
20
$2,200
21
22
$2,450
20
25

What is the shortage caused by setting the rent price ceiling at $1,800
? Write the exact answer. Do not round.


To calculate the shortage caused by setting the rent price ceiling at $1,800, we need to compare the quantity demanded and the quantity supplied at that price.

From the table:

- **At $1,800**:
  - Quantity Demanded: 24
  - Quantity Supplied: 20

**Shortage** = Quantity Demanded - Quantity Supplied  
**Shortage** = 24 - 20  
**Shortage** = **4**

The exact shortage caused by setting the rent price ceiling at $1,800 is **4 units**.

Would you like more details on this concept or have any questions? Here are 5 related questions:

1. How would the shortage change if the price ceiling were set at $2,200?
2. What happens to the shortage if the price ceiling is below the equilibrium price?
3. Can you calculate the equilibrium price from the given data?
4. How does a price ceiling impact the supply and demand balance in a market?
5. What are the potential long-term effects of setting a price ceiling in a rental market?

**Tip:** In economics, a price ceiling below the equilibrium price generally leads to a shortage because the quantity demanded exceeds the quantity supplied at that price.

What is the shortage caused by setting the rent price ceiling at $1,800? Write the exact answer. Do not round.

Learn how to calculate the shortage in a rental market when a price ceiling is set at $1,800. Understand key concepts like supply and demand, and use the exact quantities provided to determine the shortage. Suitable for students in Grades 9-12.

Math Problem Statement

Solution

Ask a new question for Free

By Image

Math Problem Analysis

Mathematical Concepts

Formulas

Theorems

Suitable Grade Level

Related Recommendation