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History
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| Number of pages / Number of words: |
3 / 733 |
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If prices were above equilibrium, the opposite would happen. There would be a surplus of available apartments and would drive the price down. Shifts in supply and demand in the simulation were illustrated by different factors causing supply and demand to decrease at the same time. Price ceilings can cause problems in the equilibrium between supply and demand...
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Price ceilings can cause problems in the equilibrium between supply and demand. If the price for the rental apartments was at the ceiling price, and the demand for the apartments increased, the supply would begin to decrease. The problem faced in the simulation is this begins a snow ball affect and the quantity demanded exceeds the quantity available and a shortage will continue...
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