Microeconomics (9th Edition) (Pearson Series in Economics)
9th Edition
ISBN: 9780134184241
Author: Robert Pindyck, Daniel Rubinfeld
Publisher: PEARSON
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Chapter 2, Problem 9RQ
(a)
To determine
Graphical illustration of changes in rental price of an apartment.
(b)
To determine
Whether the rent regulation policy benefits all students.
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Some cities impose rent control laws, which are price
controls or limits on the price of rental
accommodations (apartments, houses, and
mobile homes). New York City alone had over two
million rent-controlled apartments in the early 1950s, but
only about 27,000 as of 2014. Show the effect of a rent
control law on the equilibrium rental price and the quantity
of N.Y. apartments. Show the amount of excess demand
on your supply-and-demand diagram.
Consider the market rental dwellings in New York
illustrated in the figure to the right. Suppose the maximum
rent with New York's laws is p.
1.) Using the point drawing tool, indicate the quantity of
rental dwellings demanded and the market rent with the
rent control laws. Label this point 'ed.'
2.) Using the point drawing tool, indicate the quantity of
rental dwellings supplied and the market rent with the rent
control laws. Label this point 'es.'
Carefully follow the instructions above, and only draw the
required objects.
P, rent
Q
Q, quantity…
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Chapter 2 Solutions
Microeconomics (9th Edition) (Pearson Series in Economics)
Ch. 2 - Prob. 1RQCh. 2 - Prob. 2RQCh. 2 - If a 3-percent increase in the price of corn...Ch. 2 - Prob. 4RQCh. 2 - Explain why for many goods, the long-run price...Ch. 2 - Why do long-run elasticities of demand differ from...Ch. 2 - Prob. 7RQCh. 2 - Prob. 8RQCh. 2 - Prob. 9RQCh. 2 - In a discussion of tuition rates, a university...
Ch. 2 - Suppose the demand curve for a product is given by...Ch. 2 - Prob. 12RQCh. 2 - Prob. 13RQCh. 2 - Prob. 1ECh. 2 - Consider a competitive market for which the...Ch. 2 - Prob. 3ECh. 2 - Prob. 4ECh. 2 - Prob. 5ECh. 2 - Prob. 6ECh. 2 - In 2010, Americans smoked 315 billion cigarettes,...Ch. 2 - In Example 2.8 we examined the effect of a...Ch. 2 - In Example 2.8 (page 52), we discussed the recent...Ch. 2 - Prob. 12E
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