Exploring Macroeconomics
8th Edition
ISBN: 9781544337722
Author: Robert L. Sexton
Publisher: SAGE Publications, Inc
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Chapter 5, Problem 4P
To determine
Effect of setting rental price ceilings above and below the
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landlords show up at the next council meeting and demand an increase in rents.the council members vote to repeal the price ceiling and instead replace it with a price floor that is RM 50 above the equilibrium price. what is the new market price? how many two-bedroom apartments will be rented?
can you draw the graph for this quetion(3c)
A city's state cabinet has agreed on a rent freeze for five years to counter rising housing costs in the city. Only housing built since 2014 and some social housing will be exempt from the freeze. Discuss the effect of this policy on the quality and quantity of housing, on landlords and tenants, and on other markets.
How would an increase in the demand for housing affect the market for construction workers?
The demand for construction workers would increase, causing construction workers' wages to rise.
The demand for construction workers would increase, causing construction workers' wages to fall.
The demand for construction workers would decrease, causing construction workers' wages to rise.
The demand for construction workers would decrease, causing construction workers' wages to fall.
Chapter 5 Solutions
Exploring Macroeconomics
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- The equilibrium price in the housing market is very high. What will happen if the government imposes a very high price ceiling that is below but very close to the equilibrium price on the housing market? How does that affect the poor and the market for housing? Are there any loses or gains?arrow_forwardHow will an increase in population growth in Rock Hill affect the equilibrium price and quantities of residential houses? Plot a chart with supply and demand curves to illustrate your idea.arrow_forwardThe town council is contemplating the imposition of a R350 per month rent ceiling on apartment rooms in the town. An economist at the university estimates the demand and supply curves as: QD = 5600 - 8P QS = 500 + 4P, where P = monthly rent, and Q = number of apartments available for rent. For purposes of this analysis, apartments can be treated as identical. a) Calculate the equilibrium price and quantity that would prevail without the price ceiling.[1] b) Calculate producer and consumer surplus at this equilibrium. [3] c) Provide a rough sketch of the information calculated in (a) and (b). [2] d) What quantity will eventually be available if the rent ceiling is imposed? What is the amount of the shortage? [2] e) Calculate then resulting impact on consumer and producer surplus.[3] f) What is meant by deadweight loss? Why does a price ceiling usually result in a deadweight loss? In your answer explain the impact on both producers and consumers. [4]arrow_forward
- what happens to the market price for rental cars as a result of the demand shiftarrow_forwardWhy would demand for steel may decline when demand for aluminum rises? What kind of relationship exists between the two?arrow_forwardThe rent for 2-bedroom apartments in Las Vegas rose from an average of $954 in June 2017 to $1,038 in June 2018. Demand for 2-bedroom apartments in Las Vegas was rising during this period as well. This is hard to explain because the law of demand says that higher prices should lead to lower demand. Do you agree or disagree? Explain your answer.arrow_forward
- Typed numeric answer will be automatically saved. Question 3 The inverse demand for push scooters: P = 900 -4Q The inverse supply for push scooters: P = 25+ 3Q What is the equilibrium price in this market? Draw the graph, if it helps. Typed numeric answer will be automatically saved. Knygaarrow_forwardThe price of gasoline is currently $3.94, this is a 23% increase from a year ago. What was the price of gas a year ago.arrow_forwardAssume that the market demand for a product is represented by the equation P=50- and its market supply by the equation P = 10 + 2Qs where Qd and are quantity demanded and quantity supplied, respectively, and P is the market price. Determine the equilibrium market price and quantity of the product. Clearly show your steps and calculations .arrow_forward
- With the aid of an appropriate diagram, explain how the equilibrium price and quantity traded of a normal good will change with an increase in the daily minimum wage.arrow_forwardWhat does each part of the graph stand for? Assume that a local government imposes a price ceiling of $8, how many units will be excessively supplied/demanded?arrow_forwardWhat sort of shift in supply or demand would result in a market equilibrium with higher prices but lower sales volume? What might cause such a shift?arrow_forward
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