In the graph below we model the long-term rental market (i.e. contract of 6 months or more), assuming it is perfectly competitive. Let's try to model the impact that short-term rental platforms might have on this market. To do so, let's compare a market without such platform (before) and a market after the platforms have been introduced. In the figures, the vertical axis r is the price, while Q is the quantity of rental accommodation. Which figure best represents the introduction of short-term rental platforms? a) top-left b) top-right c) bottom-left d) bottom-right Their effect is to cause a) an increase b) a decrease or c) neither an increase nor a decrease in rental prices? and a) an increase b) a decrease or c) neither an increase nor a decrease in rental accommodation?
In the graph below we model the long-term rental market (i.e. contract of 6 months or more), assuming it is
Which figure best represents the introduction of short-term rental platforms?
a) top-left
b) top-right
c) bottom-left
d) bottom-right
Their effect is to cause a) an increase b) a decrease or c) neither an increase nor a decrease in rental prices?
and a) an increase b) a decrease or c) neither an increase nor a decrease in rental accommodation?
Trending now
This is a popular solution!
Step by step
Solved in 3 steps
