Economics (7th Edition) (What's New in Economics)
7th Edition
ISBN: 9780134738321
Author: R. Glenn Hubbard, Anthony Patrick O'Brien
Publisher: PEARSON
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Chapter 4, Problem 4.3.13PA
Sub part (a):
To determine
The impact of rent control on the rental apartments.
Sub part (b):
To determine
The impact of rent control on the rental apartments.
Sub part (c):
To determine
The impact of rent control on the rental apartments.
Sub part (d):
To determine
The impact of rent control on the rental apartments.
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K
Use the information in the following table (and in the graph) on the market for apartments in Bay
City to answer the following questions.
Rent
$300
400
500
600
700
800
Equilibrium rent is $
responses as integers.)
Quantity
Demanded
325,000
300,000
275,000
250,000
225,000
200,000
Quantity
Supplied
175,000
200,000
225,000
250,000
275,000
300,000
In the absence of rent control, what is the equilibrium rent and the equilibrium quantity of
apartments rented?
and the equilibrium quantity is thousand apartments. (Enter your
Price (dollars per month)
1000-
900-
800-
700-
600-
500-
400-
300-
200-
100-
0+
0
Supply
Price Ceiling
Demand
50 100 150 200 250 300 350 400
Quantity (apartments per month in thousands)
Q
Q
Suppose that the demand and supply schedules for rental apartments in the city of Gotham are as given in the following table.
Apartments
Demanded
Apartments
Supplied
15,000
12,500
10,000
7,500
5,000
Monthly Rent
$2,500
2,000
10,000
12,500
15,000
1,500
1,000
500
17,500
20,000
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…
The following graph plots the supply and demand curves in the market for motor scooters.
Use the black point (plus symbol) to indicate the equilibrium price and quantity of motor scooters. Then use the green point (triangle symbol) to fill
the area representing consumer surplus, and use the purple point (diamond symbol) to fill the area representing producer surplus.
(?)
PRICE (Dollars per scooter)
300
270
240
210
180
150
120
60
30
0
0
Demand
Supply
95 190 285 380 475 570 665 780 855
QUANTITY (Millions of scooters)
Total surplus in this market is $
950
million.
Equilibrium
A
Consumer Surplus
Producer Surplus
Chapter 4 Solutions
Economics (7th Edition) (What's New in Economics)
Ch. 4.A - Prob. 1RQCh. 4.A - Prob. 2RQCh. 4.A - Prob. 3RQCh. 4.A - Prob. 4RQCh. 4.A - Prob. 5PACh. 4.A - Prob. 6PACh. 4.A - Prob. 7PACh. 4.A - Prob. 8PACh. 4.A - Prob. 9PACh. 4 - Prob. 1TC
Ch. 4 - Prob. 2TCCh. 4 - Prob. 4.1.1RQCh. 4 - Prob. 4.1.2RQCh. 4 - Prob. 4.1.3RQCh. 4 - Prob. 4.1.4RQCh. 4 - Prob. 4.1.5PACh. 4 - Prob. 4.1.6PACh. 4 - Prob. 4.1.7PACh. 4 - Prob. 4.1.8PACh. 4 - Prob. 4.1.9PACh. 4 - Prob. 4.1.10PACh. 4 - Prob. 4.1.11PACh. 4 - Prob. 4.1.12PACh. 4 - Prob. 4.1.13PACh. 4 - Prob. 4.1.14PACh. 4 - Prob. 4.2.1RQCh. 4 - What is economic efficiency? Why do economists...Ch. 4 - Prob. 4.2.3PACh. 4 - Prob. 4.2.4PACh. 4 - Prob. 4.2.5PACh. 4 - Prob. 4.2.6PACh. 4 - Prob. 4.2.7PACh. 4 - Prob. 4.2.8PACh. 4 - Prob. 4.2.9PACh. 4 - Prob. 4.2.10PACh. 4 - Prob. 4.3.1RQCh. 4 - Prob. 4.3.2RQCh. 4 - Prob. 4.3.3RQCh. 4 - Prob. 4.3.4RQCh. 4 - Prob. 4.3.5PACh. 4 - Prob. 4.3.6PACh. 4 - Prob. 4.3.7PACh. 4 - Prob. 4.3.8PACh. 4 - Prob. 4.3.9PACh. 4 - Prob. 4.3.10PACh. 4 - Prob. 4.3.11PACh. 4 - Prob. 4.3.12PACh. 4 - Prob. 4.3.13PACh. 4 - Prob. 4.3.14PACh. 4 - Prob. 4.3.15PACh. 4 - Prob. 4.3.16PACh. 4 - Prob. 4.3.17PACh. 4 - Prob. 4.3.18PACh. 4 - Prob. 4.3.19PACh. 4 - Prob. 4.4.1RQCh. 4 - Prob. 4.4.2RQCh. 4 - Prob. 4.4.3RQCh. 4 - Prob. 4.4.4RQCh. 4 - Prob. 4.4.5PACh. 4 - Prob. 4.4.6PACh. 4 - Prob. 4.4.7PACh. 4 - Prob. 4.4.8PACh. 4 - Prob. 4.4.9PACh. 4 - Prob. 4.4.10PACh. 4 - Prob. 4.2CTE
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