Question

Only need 3-5 !

HW Assignment #4 Disequilibrium Make sure to graph every question 1. Can you explain the practice of scalping tickets for 2. If rent controls are so counterproductive, why do cities 3. Who is harmed by rent controls? Who is helped? major sporting events in terms of market shortages? How else might tickets be distributed? impose them? How else might the housing problems of poor people be solved? 4. What would happen in the apple market if the government set a minimum price of $2.00 per apple? What might motivate such a policy? 5. Is there a shortage of on-campus parking at your school? How might the shortage be resolved?

Answer 1

ANSWER-3)

The rent control harms mainly two groups:

-- Potential Renters: The new renters who are willing to move in and pay a premium to locate a place to live are hurt by rent control. When there are only so many apartments, the people who were lucky enough to be in the apartments when rent control started will not be keen to leave. Thus people who do not have an apartment yet are often hurt by rent control policies.

-- Owners and Developers: The apartment’s owners and developers are also hurt by such policies. Once the existing units are fulfilled, there is no financial incentive for them to build more properties for more people.

The rent control helps:

-- Lower rents: The rent control results in lower rents for few city's residents who are lucky enough to be in the apartments when rent control started

-- Provides security: Rent controls provide higher security over their tenancy and also regulate the rents that they pay