Problem
Due to a slight recession that lowered incomes, the 2002 market prices for last-minute rentals of U.S. beachfront properties were lower than usual (June Fletcher, "Last-Minute Beach Rentals Offer Summer's Best Deals," Wall Street Journal, June 21, 2002, D1).
a. How does a recession affect the demand curve and the supply curve for rental properties? In answering the supply curve question, consider the two options of owners of beach homes: staying in the homes or renting them to others.
b. Use a supply-and-demand analysis to show the effect of decreased income on the price of rental homes.
The response should include a reference list. Double-space, using Times New Roman 12 pnt font, one-inch margins, and APA style of writing and citations.