Seafront properties along the promenade at Brighton on the south coast of England have an inelastic supply, and cars have an elastic supply. Suppose that a rise in population doubles the demand for...

Seafront properties along the promenade at Brighton on the

south coast of England have an inelastic supply, and cars

have an elastic supply. Suppose that a rise in population

doubles the demand for both products (that is, the quantity

demanded at each price is twice what it was).

a. What happens to the equilibrium price and quantity in

each market?

b. Which product experiences a larger change in price?

c. Which product experiences a larger change in quantity?

d. What happens to total consumer spending on each

product?