FIGURE 3-4 -Refer to Figure 3-4.The Market for 1-Bedroom Apartments in Collegetown

question 95

Multiple Choice

FIGURE 3-4
-Refer to Figure 3-4.The market for 1-bedroom apartments in Collegetown will be in equilibrium at a price and quantity combination of

• A)$500; 300 apartments.
• B)$700; 450 apartments.
• C)$500; 350 apartments.
• D)$300; 250 apartments.
• E)$400; 300 apartments.

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Definitions:

Price

The financial commitment expected, necessary, or made as payment for an article.

Miles

A unit of distance measuring 5280 feet or approximately 1.609 kilometers.

Inferior Good

A type of good whose demand decreases as the income of consumers increases, opposite to normal goods.

Normal Good

A type of good for which demand increases when income increases, and falls when income decreases, but price remains constant.