Economics:
Economics:
10th Edition
ISBN: 9781285859460
Author: BOYES, William
Publisher: Cengage Learning
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Chapter 24, Problem 7E
To determine

To explain:

The predictions about the market for illegal drugs in the long run. The impact of government's war against drugs in the short run and in the long run.

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Which of the following best illustrates the concept of a competitive market equilibrium? Persistent shortages of physicians practicing in rural areas Long-run economic profits approaching zero in long-term acute care hospital markets Excess capacity of hospital beds in large cities Monopoly pricing for brand-name prescription drugs
Rent controls force landlords to price apartments below the equilibrium price level. An immediate effect is a shortage (excess demand) of apartments, because the quantity of apartments demanded is greater than the quantity supplied at the regulated price.   When cities prevent landlords from charging market rents, which of the following are common long-run outcomes? Check all that apply. a. The quantity of available rental housing units falls. b. Nonprice methods of rationing emerge. c. The quality of rental housing units falls. d. Landlords earn lower profits from renting housing units, but the rent charged has no effect on either the quantity or quality of rental units.
Find supporting evidence that competition makes markets more efficient in this case.
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