Suppose that there are originally 5 units in the market and that 1 of them is turned
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(a) Suppose that person A decides to buy the condominium. What will be the highest price at which the demand for apartments will equal the supply of apartments? What will be the lowest price? Enter your answers in column A, in the table. Then calculate the equilibrium prices of apartments if B, C, . . . , decide to buy the condominium.
(b) Suppose that there were two people at each reservation price and 10 apartments. What is the highest price at which demand equals supply?
(c) Suppose that one of the apartments was turned into a condominium. Is that price still an equilibrium price?
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a Person A B C D E F G H High price 18 18 18 18 ...View the full answer
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Muhammad Umair
I have done job as Embedded System Engineer for just four months but after it i have decided to open my own lab and to work on projects that i can launch my own product in market. I work on different softwares like Proteus, Mikroc to program Embedded Systems. My basic work is on Embedded Systems. I have skills in Autocad, Proteus, C++, C programming and i love to share these skills to other to enhance my knowledge too.
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