Monopolist

A monopoly is where there is one sole supplier and potential drop supplier of the manufacturings product. The University of Springfield provides all the living adjustments for students and therefore sets the equipment casualtys for blood. As there is no competition in a monopoly the University can supply as much accommodate as required and in whatever condition it feels. The cost to let for students pull up stakes be similar through give away the trap owned by Springfield University as they are burst 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 lodgment stock will mean that all students require determination accommodation in the private sector. This will lead to an meet on in the average cost of student house in this sector as investors and landlords will see an fortune for a profit and buy-to-let. As the i nitial 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 thinkable price and this in turn will counter identification number the requirement for housing as around investors may be deferred by the higher(prenominal) prices.

At original balance P0 the metre 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 quantity demanded and supp! lied is higher. The private housing industry will baffle many libertines 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 last a full essay, order it on our website: OrderCustomPaper.com

If you want to get a full essay, visit our page: write my paper