中级微观经济学习题及答案.docxVIP

ANSWERS The Market Suppose that there were 25 people who had a reservation price of $500, and the 26th person had a reservation price of $200. What would the demand curve look like? . It would be constant at $500 for 25 apartments and then drop to $200. In the above example, what would the equilibrium price be if there were 24 apartments to rent? What if there were 26 apartments to rent? What if there were 25 apartments to rent? . In the ?rst case, $500, and in the second case, $200. In the third case, the equilibrium price would be any price between $200 and $500. If people have di ? erent reservation prices, why does the market demand curve slope down? . Because if we want to rent one more apartment, we have to o? er a lower price. The number of people who have reservation prices greater than p must always increase as p decreases. In the text we assumed that the condominium purchasers came from the inner-ring people — people who were already renting apartments. What would happen to the price of inner-ring apartments if all of the condominium purchasers were outer-ring people — the people who were not currently renting apartments in the inner ring? . The price of apartments in the inner ring would go up since demand for apartments would not change but supply would decrease. Suppose now that the condominium purchasers were all inner-ring people, but that each condominium was constructed from two apartments. What would happen to the price of apartments? . The price of apartments in the inner ring would rise. What do you suppose the e? ect of a tax would be on the number of apartments that would be built in the long run? . A tax would undoubtedly reduce the number of apartments supplied in the long run. Suppose the demandcurve is D(p) = 100- 2p. What price would the monopolist set if he had 60 apartments? How many would he rent? What price would he set if he had 40 apartments? Howmany would he rent? . Hewould set a price of 25 and rent 50 apartments. In the second cas