New York City has a long-standing policy of controlling rents in certain parts of the city—in essence,a price ceiling on rent. Is the market for apartmentslikely to be efficient or inefficient? What does thisimply for the size of total surplus?
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New York City has a long-standing policy of controlling rents in certain parts of the city—in essence,
a
likely to be efficient or inefficient? What does this
imply for the size of total surplus?
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- Why can total surplus never fall below zero in a market for goods and services?Suppose that the demand and supply schedules for rental apartments in the city of Gotham are as given in the following table. Monthly Rent $ 2,500 2,000 1,500 1,000 500 Apartments Demanded 12,500 15,000 17,500 20,000 22,500 Apartments Supplied 17,500 15,000 12,500 10,000 7,500 Instructions: Enter your answers as a whole number. a. What is the market equilibrium rental price per month and the market equilibrium number of apartments demanded and supplied? Market equilibrium rental price = $ Market equilibrium quantity= apartments b. If the local government can enforce a rent-control law that sets the maximum monthly rent at $1,500, will there be a surplus or a shortage? (Click to select) Of how many units? |apartments per month How many units will actually be rented each month? |apartments c. Suppose that a new government is elected that wants to keep out the poor. It declares that the minimum rent that landlords can charge is $2,500 per month. If the government can enforce that price…Define Surplus ?
- Assume the market for one bedroom apartments in a large city has the following demand and supply functions, where R is the monthly rent in dollars and Q is the number of one bedroom apartments: Demand: R = 700 – Q Supply: R = 100 + 2Q The government imposes a rent ceiling of $400 per month Draw a graph of the market. Be sure to fully and clearly label the graph, including: the Supply and Demand curves (as D and S respectively), Equilibrium Quantity (Q*), Equilibrium Price (R*), Rent Ceiling (Rc), Quantity Demanded with the Rent Ceiling (Qdc) and Quantity Supplied with the rent ceiling (Qsc).Over the past few year's consumer tastes and the number of buyers in the market for a game called 'pickle ball' have increased dramatically. Thus, the demand for tickets to pickle ball events has increased. Before this all started the equilibrium price of a ticket to a pickle ball event was negative. This means that: A few years ago, there would have been a surplus of tickets even at a price of zero, now the invisible hand has pushed prices to greater than zero. A) A few years ago, the quantity of tickets demanded was less than quantity supplied. B) Pickle ball event tickets resembled the market for recyclable cardboard a few years ago C) Greater demand for pickle ball tournament tickets will lead to a greater demand - and higher pay - for professional pickle ball players. D) All of the above. E) B and D onlySuppose that the demand and supply schedules for rental apartments in the city of Gotham are as given in the following table. Monthly Rent Apartments Demanded Apartments Supplied $ 2,500 10,000 15,000 $ 2,000 12,500 12,500 $ 1,500 15,000 10,000 $ 1,000 17,500 7,500 $ 500 20,000 5,000 a. What is the market equilibrium rental price per month and the market equilibrium number of apartments demanded and supplied? Market equilibrium rental price = $ Market equilibrium quantity = apartments I have no idea how to solve this problem
- Suppose that the demand and supply schedules for rental apartments in the city of Gotham are as given in the table below. Monthly Rent Apartments Demanded Apartments Supplied $2,750 10,000 15,000 2,250 12,500 12,500 1,750 15,000 10,000 1,250 17,500 7,500 750 20,000 5,000 Instructions: Enter your answers as whole numbers. a. What is the market equilibrium rental price per month and the market equilibrium number of apartments demanded and supplied? Market equilibrium rental price is: Market equilibrium quantity is: b. If the local government can enforce a rent-control law that sets the maximum monthly rent at $1,750, will there be a surplus or a shortage? Of how many units? How many units will actually be rented each month? c. Suppose that a new government is elected that wants to keep out the poor. It declares that the minimum rent that can be charged is $2,750 per month. If the government can enforce that…Please written by computer source Suppose that the demand curve for a product is given by Q = 100 −10p and the supply curve is Q = 10p. Assume that income effects (elasticities) are small so consumer surplus is a good measure of consumer welfare. (a) What is the equilibrium price and quantity with no distortions? (b) The government imposes a tax of $2.00 per unit sold. What is the new equilibrium quantity? Sketch the market equilibrium in a graph. (c) Given the tax what is the change in consumer surplus? What is the change in producer surplus? What is the change in government revenue? What is the net Dead Weight Loss from the tax? (d) Say the government proposes to use the revenue from the tax to pay for snacks in our last ECON 312A lecture. The total social benefits from the snacks would be $82.00. Will the tax increase overall welfare if the revenue is used to buy the snacks? What is the dollar value of the net gain or loss to society?Suppose that the demand and supply schedules for rental apartments in the city of Gotham are as given in the following table. Apartments Apartments Monthly Rent $2,500 Demanded Supplied 12,500 17,500 2,000 15,000 15,000 1,500 17,500 12,500 1,000 20,000 10,000 500 22,500 7,500 Instructions: Enter your answers as a whole number. a. What is the market equilibrium rental price per month and the market equilibrium number of apartments demanded and supplied? Market equilibrium rental price = $ Market equilibrium quantity = apartments b. If the local government can enforce a rent-control law that sets the maximum monthly rent at $1,500, will there be a surplus or a shortage? |(Click to select) V Of how many units? apartments per month How many units will actually be rented each month? apartments c. Suppose that a new government is elected that wants to keep out the poor. It declares that the minimum rent that landlords can charge is $2,500 per month. If the government can enforce that price…
- Solve a Consumers' or Producers' Surplus Problem. A sports watch has a price-demand equation given by p= D(z) = 40-2-0174176a dollars, which gives the price per watch when a watches are demanded. The price-supply equation for the watch is given by p= S(x) = 0.6z+4 dollars, which gives the price per watch when z watches are supplied. If the equilibrium quantity is 11, find the consumers' surplus and the producers' surplus. The consumers' surplus is. (Your answer must begin with S.) The producers' surplus is Your answer must begin with $.)Is the shadow price of a dairy feed ration different from the price the farmer pays per pound of the ration? Explain. Of what importance is a shadow price to a farmer seeking to maximize profits from a dairy herd?What does each part of the graph stand for? Assume that a local government imposes a price ceiling of $8, how many units will be excessively supplied/demanded?