Microeconomics
2nd Edition
ISBN: 9781259813337
Author: KARLAN, Dean S., Morduch, Jonathan
Publisher: Mcgraw-hill Education,
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Question
Chapter 5, Problem 13RQ
To determine
To find:
Reasons for which consumers are in favor of policy of rent control.
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If rent controls are so counterproductive, why do cities impose them? How else might the housing problems of poor people be solved?
"New York City has a long-standing policy of control-ling rents in certain parts of the city—in essence, a price ceiling on rent. Is the market for apartments likely to be efficient or inefficient? What does this imply for the size of total surplus?"
Analyze the factors that affect the demand for residential renting with examples
Chapter 5 Solutions
Microeconomics
Ch. 5 - Prob. 1RQCh. 5 - Prob. 2RQCh. 5 - Prob. 3RQCh. 5 - Prob. 4RQCh. 5 - Prob. 5RQCh. 5 - Prob. 6RQCh. 5 - Prob. 7RQCh. 5 - Prob. 8RQCh. 5 - Prob. 9RQCh. 5 - Prob. 10RQ
Ch. 5 - Prob. 11RQCh. 5 - Prob. 12RQCh. 5 - Prob. 13RQCh. 5 - Prob. 14RQCh. 5 - Prob. 15RQCh. 5 - Prob. 16RQCh. 5 - Prob. 1PACh. 5 - Prob. 2PACh. 5 - Prob. 3PACh. 5 - Prob. 4PACh. 5 - Prob. 5PACh. 5 - Prob. 6PACh. 5 - Prob. 7PACh. 5 - Prob. 8PACh. 5 - Prob. 10PACh. 5 - Prob. 11PACh. 5 - Prob. 12PACh. 5 - Prob. 13PACh. 5 - Prob. 14PACh. 5 - Prob. 15PACh. 5 - Prob. 16PACh. 5 - Prob. 17PACh. 5 - Prob. 18PACh. 5 - Prob. 19PACh. 5 - Prob. 20PACh. 5 - Prob. 21PACh. 5 - Prob. 22PACh. 5 - Prob. 23PACh. 5 - Prob. 24PACh. 5 - Prob. 25PA
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Similar questions
- Assuming normal demand and supply relationships, show how income transfers to consumers and subsidies to producers of housing could be used to alleviate the harmful effects of rent controls.arrow_forwardWhat is the relationship between the rent gradient and transportation costs in a homogeneous monocentric city?arrow_forwardSince price ceiling regulations result in chronic shortages, what recommendations do you have for solving the housing crises in big cities? Instead of government imposing price control on rent, what can society do to handle this problem?arrow_forward
- Could you please provide an example (article) of the Toronto housing market and explain in economic terms why supply and demand are in this situation?arrow_forwardIn an unregulated, competitive market we could calculate consumer surplus if we knew the equations representing supply and demand. For this problem assume that supply and demand are as follows: Supply P = 4 + 0.116Q Demand P = 25 - 0.10Q where P represents unit price in dollars and Q represents the number of units sold each year. Calculate the annual value of aggregate consumer surplus.arrow_forwardMonthly rent Quantitydemanded Quantitysupplied $600 800 140 $650 650 210 $700 500 280 $750 350 350 $800 200 420 What is the market price without rent control? $ How many one-bedroom apartments will be rented after the rent control law is passed?arrow_forward
- James lives in a rent controlled apartment and has for the past few weeks been trying to get the supervisor to fix his shower.what does waiting to get ones shower fixed have to do with rent controlled apartment?arrow_forwardCity A and City B are on the opposite sides of the River. Suppose A imposes rent controls. With the use of diagrams explain what effect these controls will have upon the housing markets in A and B City?arrow_forwardAssume that the South Australian government stops collecting stamp duty on home purchases from buyers. What will be the likely effect on the market for owner-occupied homes in the short run, and in the long term? Be sure to describe your assumptions, and the reasons for them.arrow_forward
- Given the supply - demand function of printers in Vietnam as follows:Sx = -20000 + 250PDx = 160000-350PKnowing that Vietnam is considered a small country, the price of a printer on the world market is $120/piece.a. If the Government of Vietnam levies an import tax of 25% on this item, calculate the loss to domestic consumers. How much is the import tax revenue from the Vietnamese government's printer products in this case?b. Due to the commitment to integration, the Government of Vietnam applies an import tax rate of 12.5% for printers, calculate the change in the import tax revenue of the Government of Vietnam.c. To ensure that there are no more imports, what is the minimum tax rate that the Vietnamese government should set?arrow_forwardSuppose Raleigh decides to adopt rent controls that end up reducing the rates landlords can charge below equilibrium rates. Which of the following is a likely consequence? Select one: A.Some landlords will convert rental housing units to other uses, thereby reducing the number of rental housing units available B.At lower rents, more NC State students will prefer living off campus as opposed to living in a dorm C.There will be a shortage of rental units in Raleigh D.All of the these answers are correctarrow_forwardAnalyse the economic implications of "rent-seeking" with the aid of a diagramarrow_forward
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