The town of snowville is concerned that its rental property market is overpriced. the demand for rental housing is p = 48 - 2q, while the supply of rental housing is p = 12 + q. if the town imposes a price ceiling of 16 dollars, and the quantity demand will be ___ while quantity supply will be ___.
For this case what you should do is to clear q in both equations with a price of p = 16 $ We have then: For the demand p = 48 - 2q q = (48 - p) / 2 q = (48 - 16) / 2 q = 16 For the supply: p = 12 + q q = p-12 q = 16-12 q = 4 Answer: if the town imposes a price ceiling of 16 dollars, and the quantity demand will be 16 while quantity supply will be 4.
