Use the Following Information to Answer the Next 2 Questions

question 18

Multiple Choice

Use the following information to answer the next 2 questions.
Suppose demand for apartments in a metropolitan area is: #Apt.units=60,000 +0.30) # households) -80) *$Rent/unit/mo.)
-If developers increase the number of apartment units from 88,000 to 100,000, over a period of several years, to what level will real rent fall in the market below the original $400/mo level if the population remains stable at 200,000 households?

• A) $350
• B) $300
• C) $250
• D) $200
• E) Cannot be determined from the information given.

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Definitions:

Comparative Balance Sheet

A financial statement that presents the balances of assets, liabilities, and equity at two or more points in time, allowing for comparison and analysis.

Current Income Statement

A financial report showing a company's revenues, expenses, and net income over a specific period, typically a quarter or year.

Prior Year's Income Statement

A financial report that shows a company's financial performance in terms of revenue, expenses, and net income for the previous fiscal year.

Statement of Cash Flows Worksheet

A financial document used to analyze and prepare the statement of cash flows, showing how cash changes from operating, investing, and financing activities.