Monopolist

A monopoly is where there is one sole supplier and electromotive force supplier of the constancys product. The University of Springfield provides all the lodging for students and therefore sets the equipment casualtys for take away. As there is no competition in a monopoly the University can supply as much lodging as required and in whatever condition it feels. The hurt to let for students ordain be similar through verboten the confine owned by Springfield University as they are prospect the market price. However there is not great monopoly force-out in this industry as there are pen up substitutes to the trapping provided already in the privy sector. The elimination of the admit stock will mean that all students require last try-on in the private sector. This will lead to an colligate on in the average cost of student housing in this sector as investors and landlords will see an probability for a profit and buy-to-let. As the initial pick out to buy houses exceeds the bar of houses available to buy, the average price will increase as the owners try and sell for the best pr correspondical price and this in turn will counter act the requirement for housing as roughly investors may be deferred by the higher(prenominal) prices.

At original equilibrium P0 the measuring rod demanded is Q0 on the demand curve D0 and supply curve S0, as the industry changes from monopoliser to the private industry the demand to buy accommodation increases, and the demand curve shifts to D1, therefore creating a new equilibrium at P1 and Q1, now at the new price P1 the qu antity demanded and supplied is higher. ! The private housing industry will bring in more steadys so each firm will only have a small market share, however each firm in the industry will offer student housing which is secernate from its competitors E.g. En-suite bathrooms and double-beds. As the rivals compete with each other for the students rent the grapheme of the accommodation will improve in non-price competition, where some landlords will have better quality and...If you want to use up a full essay, order it on our website: OrderCustomPaper.com

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