Answer
See below:
Work Step by Step
(a)
The system consists of models, which describe demand and supply for three-bedroom apartments.
The price at which demand and supply are equal is called equilibrium price. The quantity supplied and demanded at that price is called equilibrium quantity.
The equilibrium quantity can be calculated as follows:
\[\begin{align}
& -50x=50x+2000 \\
& 100x=2000 \\
& x=20
\end{align}\]
This value is substituted in supply model or demand model to find the equilibrium price.
\[\begin{align}
& p=50x \\
& =50\left( 20 \right) \\
& =1000
\end{align}\]
(b)
The price at which supply and demand is equal is called equilibrium price.
Substitute the price in demand and supply model to calculate the apartments in demand and apartments offered by the suppliers.
