1. Suppose the government passes a rent control law.  a) what would happen to the quantity demanded and the quantity supplied of the apartments? b) would a shortage or surplus result? Show the shortage or surplus in your graph. c)would the amount of market exchange increase or decrease or remain the same? Explain carefully. Please support answers with a graph and explain.

USE TABLE #1: For the market for electric automobiles, the equilibrium price is $ ________________ and the equilibrium quantity is___________  .  (Remember to use a comma, if a comma is needed and to include the decimal point and two numbers to the right of the decimal point).

Use the following information to answer Questions 1 - 3 In a competitive market for whole milk, the market demand is QD = 1000 – 50P and the market supply is QS = 150P, where Q denotes the quantity in gallons and P denotes the price in dollars. [1] Calculate the competitive market equilibrium price? [2] Calculate the competitive market equilibrium quantity? [3] At the competitive market equilibrium price and quantity, calculate the value for consumer surplus? Hint: it might be helpful to construct a graph.

Consumer surplus is a measure of the difference between: a)  The price which a consumer has to pay and the cost of producing the good (in a diagram, the area between the market price, and the supply curve). b)  The consumer’s willingness to pay, and the cost of production (the area between the demand curve and the supply curve). c)  The value which a consumer places on a unit of the good, and the market price (the area between the demand curve and the market price line). d)  The marginal revenue from sales and the marginal cost of sales (the area between the marginal revenue and the marginal cost curves).

Problem 4. From number 2, draw another graph and call equilibrium Point A. Illustrate on the graph what will happen to the Supply curve when producers enter the market? Does the question refer to an increase, need help understanding the question.

Concerned about the political fallout from rising gas prices, suppose that the U.S. government imposes a price ceiling of $3.00 a gallon on gasoline. Explain how the market for gasoline would react to this price ceiling if a global shortage of oil sent the equilibrium price of gasoline to $3.50 a gallon. Would the U.S. gasoline market be efficient?

Assume that you are told that because of some changes, the equilibrium price increased but it is unknown if the equilibrium quantity increased, remained the same, or decreased. Which of the following would be consistent with this outcome?a. There was a decrease in input costs and consumers expected lower income.b. Consumers expected a lower price and firms expected a higher price.c. There was a decrease in income (the good is inferior) and a decrease in the number of firms.d. There was a positive change in consumer tastes and an increase in productivity.   When demand is _______ consumers are _______ to price changes and the price elasticity of demand is _______.a. elastic, relatively sensitive, greater than one (in absolute value)b. inelastic, completely insensitive, equal to one (in absolute value)c. inelastic, relatively sensitive, less than one (in absolute value)d. unit elastic, hyper-sensitive, equal to zeroe. perfectly elastic, hyper-sensitive, equal to one (in absolute value)…

Identify which side of the market for new automobiles is affected (demand or supply), how is it affected (increase or decrease), what happens to equilibrium price and quantity exchanged due to each of the following changes separately. (You don’t need to draw a graph unless it really makes your life easier   f. Consumers expect car prices to rise in the near future. g. Consumers suddenly become more concerned about environment.