Macroeconomics
11th Edition
ISBN: 9781260506891
Author: Colander
Publisher: MCG
expand_more
expand_more
format_list_bulleted
Question
Chapter 5, Problem 8IP
(a)
To determine
Rent control and the availability of apartments.
(b)
To determine
Side payments and the availability of apartments.
(c)
To determine
Impact of eliminating the rent control.
(d)
To determine
Political appeal for rent control.
Expert Solution & Answer
Want to see the full answer?
Check out a sample textbook solution
Students have asked these similar questions
What does rent control do to the pricing and supply of apartment,
units? According to the Wall Street Journal, "Rent control
disproportionately subsidizes the affluent. A Harvard University
study in the late 1980s found that rent-controlled apartments
were in some of the city's best neighborhoods, that 94% of their
tenants were white, and roughly three-quarters of their
occupants were families without children." Do you think NYC
should maintain rent control?
Draw a supply and demand graph showing rent control. Indicate the black market price. Does rent control cause a surplus or a shortage? Is there more or less apartments available to rent?
How are rent controls likely to affect the market for housing in a city? Create a graph illustrating the market for apartments without rent controls to help with your answer. What does it mean, in terms of this market for the rent control to be effective? Would you recommend such a policy?
Chapter 5 Solutions
Macroeconomics
Ch. 5.1 - Prob. 1QCh. 5.1 - Prob. 2QCh. 5.1 - Prob. 3QCh. 5.1 - Prob. 4QCh. 5.1 - Prob. 5QCh. 5.1 - Prob. 6QCh. 5.1 - Prob. 7QCh. 5.1 - Prob. 8QCh. 5.1 - Prob. 9QCh. 5.1 - Prob. 10Q
Ch. 5.A - Prob. 1QECh. 5.A - Prob. 2QECh. 5.A - Prob. 3QECh. 5.A - Prob. 4QECh. 5.A - Prob. 5QECh. 5.A - Prob. 6QECh. 5.A - Prob. 7QECh. 5.A - Prob. 8QECh. 5.A - Prob. 9QECh. 5 - Prob. 1QECh. 5 - Prob. 2QECh. 5 - Prob. 3QECh. 5 - Prob. 4QECh. 5 - Prob. 5QECh. 5 - Prob. 6QECh. 5 - Prob. 7QECh. 5 - Prob. 8QECh. 5 - Prob. 9QECh. 5 - Prob. 10QECh. 5 - Prob. 11QECh. 5 - Prob. 12QECh. 5 - Prob. 13QECh. 5 - Prob. 14QECh. 5 - Prob. 15QECh. 5 - Prob. 16QECh. 5 - Prob. 17QECh. 5 - Prob. 1QAPCh. 5 - Prob. 2QAPCh. 5 - Prob. 3QAPCh. 5 - Prob. 4QAPCh. 5 - Prob. 5QAPCh. 5 - Prob. 1IPCh. 5 - Prob. 2IPCh. 5 - Prob. 3IPCh. 5 - Prob. 4IPCh. 5 - Prob. 5IPCh. 5 - Prob. 6IPCh. 5 - Prob. 7IPCh. 5 - Prob. 8IPCh. 5 - Prob. 9IPCh. 5 - Prob. 10IPCh. 5 - Prob. 11IPCh. 5 - Prob. 12IPCh. 5 - Prob. 13IPCh. 5 - Prob. 14IP
Knowledge Booster
Similar questions
- Next question The graph shows the demand for on-campus student housing at Purdue University in Lafayette, Indiana. The college has 12,000 rooms for rent. Rent (dollars per week) 175- If a rent ceiling of $75 a week is strictly enforced and there is no black market, who gains and who loses? 150- 125- If a rent ceiling of $75 a week is strictly enforced and there is no black market, 100- O A. students who cannot find on-campus housing gain because it's more fun to live off campus 75 B. the university gains because it doesn't have any empty rooms on campus D 50- OC. the university gains and the owners of off-campus housing lose O D. students who get the cheaper on-campus housing gain and the university and those students who cannot find on-campus housing lose cem 25 6000 8000 10000 12000 14000 16000 Quantity (rooms) ne As nt Ass O Time Remaining: 00:55:31 Next npleted 1-significant figures and units of measure Macintosh HD » Users » justinroditti » Downloads Feb 7 is course (ECI Canc O Oarrow_forwardWhat are the implications if the government started to control prices for products and how would this influence buying?arrow_forwardAre rent control laws helping/hurting the housing market? What are some of the advantages and disadvantages of rent control? Apart from making and enforcing laws, how can the government enter the housing market system to prevent high rents?arrow_forward
- City 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_forwardHow do price controls affect the market?arrow_forwardHow does a tax on sellers affect the market equilibrium?arrow_forward
- Suppose the equilibrium price for apartments is $800 per month and the government imposes rent controls of $500. Which of the following is unlikely to occur as a result of the rent controls? a. The quality of apartments will improve. b. There will be a shortage of housing. c. Landlords may be offered bribes to rent apartments. d. Landlords may discriminate among apartment renters. e. There may be long lines of buyers waiting for apartments.arrow_forwardThe figure below shows the demand for on-campus housing. The college has 200 rooms to rent. If the college puts a strictly enforced rent ceiling on rooms of $550 a month: a. What is the rent? b. How many rooms are rented? c. Is the on-campus housing market efficient? Explain why or why not. Price (dollars per month) 700 650 600 550 500 D 150 175 200 225 250 Quantity (rooms)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_forward
- "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?"arrow_forwardplease plot a graph showing the effect of a government subsidy on the market for surgical masks.arrow_forwardAnalyze the factors that affect the demand for residential renting with examplesarrow_forward
arrow_back_ios
SEE MORE QUESTIONS
arrow_forward_ios
Recommended textbooks for you
Economics (MindTap Course List)EconomicsISBN:9781337617383Author:Roger A. ArnoldPublisher:Cengage Learning
Economics (MindTap Course List)
Economics
ISBN:9781337617383
Author:Roger A. Arnold
Publisher:Cengage Learning