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Example 2: Apartment Buildings 10 apartment buildings in a college town, each contains 100 rental units. Have data on the number of apartments rented, the rental price, the amount spent on advertising, the distance to campus. Example 2: Apartment Buildings

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Example 2: Apartment Buildings

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Example 2 apartment buildings l.jpg

Example 2: Apartment Buildings

10 apartment buildings in a college town, each contains 100 rental units.

Have data on the number of apartments rented, the rental price, the amount spent on advertising, the distance to campus.


Example 2 apartment buildings2 l.jpg

Example 2: Apartment Buildings

  • What is the estimated demand function for the rental units?

  • If the owner raised rents at one complex by $100, what would you expect to happen to the number of units rented?

  • If the owner raised rents at an average apartment building, what would happen to the revenues?

  • What inferences should be drawn from this analysis?


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