Competitive Market Equilibrium (竞争性市场均衡) Quantity demanded quantity available price will neither rise nor fall so the market is at a competitive equilibrium
Competitive Market Equilibrium (竞争性市场均衡） Quantity demanded = quantity available price will neither rise nor fall so the market is at a competitive equilibrium
Competitive Market Equilibrium People willing to pay pe for close apartments get close apartments. People not willing to pay p for close apartments get distant apartments 100 QD Qs
Competitive Market Equilibrium p QD,QS p e 100 People willing to pay pe for close apartments get close apartments. People not willing to pay p e for close apartments get distant apartments
Comparative statics (静态比较分析) What is exogenous in the model? price of distant apartments quantity of close apartments incomes of potential renters What happens if these exogenous variables change? Note: We are not analyzing the transition process or dynamic process
Comparative Statics （静态比较分析） What is exogenous in the model? – price of distant apartments – quantity of close apartments – incomes of potential renters. What happens if these exogenous variables change? Note： We are not analyzing the transition process or dynamic process