New York City has been experiencing a housing emergency for a long time. Apartments are difficult to come by. In fact, the vacancy rate has been below 5 percent since World War II. Most recently (2018), the rental vacancy rate was at 3.63 percent that is much lower than the national vacancy rate, which was last recorded at an average of 6.9 percent. The vacancy rate is as low as 2.71 percent in some boroughs such as the Bronx. The most likely cause of the housing emergency is: A) a price floor on rent higher than equilibrium price. B) a price ceiling on rent lower than equilibrium price. C) too high incomes in New York City. D) a lack of a rationing mechanism to distribute existing apartments.

Haley photocopying purchases a paper from an out-of-state vendor. average weekly demand for paper is 150 cartons per week for which haley pays $15 per carton. in bound shipments from the vendor average 1000 cartoons with an average lead time of 3 weeks. haley operates 52 weeks per year; it carries a 4-week supply of inventory as safety stock and no anticipation inventory. the vendor has recently announced that they will be building a faculty near haley photocopying that will reduce lead time to one week. further, they will be able to reduce shipments to 200 cartons. haley believes that they will be able to reduce safety stock to a 1-week supply. what impact will these changes make to haley’s average inventory level and its average aggregated inventory value?