4. Using the stock & flow model of housing as a tool, explain how rent control...
4. Using the stock & flow model of housing as a tool, explain how rent control can limit affordable housing in a jurisdiction
Homework Answers
Answer:
Any approach to housing affordability that ignores the supply side will ultimately run into a problem familiar from the children's game musical chairs — if there aren't enough homes to go around, someone has to lose out.
At first blush, a "rent control" law that puts a ceiling on the amount of rent a landlord can charge should make housing more affordable. This is wrong, however. By making it less profitable to build new apartments, the argument goes, rent control laws perversely make housing less affordable by making it scarcer as their stock is limited and flow is obstructed due to low profitability to owners for rent controlled apartments.
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4. Using the stock & flow model of housing as a
tool, explain how rent control...
7. The market for rental housing in Berkeley is subject to rent-control. Before rent control, the...
7. The market for rental housing in Berkeley is subject to rent-control. Before rent control, the compet itive equilibrium was at Pc and Q. Rent control limits the price a landlord can charge to P. The short-run supply curve is upwards sloping, and long-run supply is horizontal. (a) Is this a constant cost industry? Why? (b) What is the difference between the short-run and the long-run supply curve? (c) Comment on the efficiency of the competitive equilibrium. Is it Pareto...
To make housing more affordable for residents of West Virginia, the state government has set a...
To make housing more affordable for residents of West Virginia, the state government has set a binding rent control of $300 for 1-bed apartments. Using demand and supply diagram, briefly explain the effect of this rent control on tenants, landlords and economic efficiency.
Explain the 4 tools of monetary policy and how they impact interest rates, financial markets, housing,...
Explain the 4 tools of monetary policy and how they impact interest rates, financial markets, housing, and GDP. Make sure to include the money graph. --answer with graph displaying the increase and decrease effect to the interest rates each tool has.
Q2) a) (a) (b) Tool Direction Tool Direction Chip Flow Chip Flow Figure 3. (a) and...
Q2) a) (a) (b) Tool Direction Tool Direction Chip Flow Chip Flow Figure 3. (a) and (b) is the schematic of milling tool, showing the direction of cutting and the direction of chip flow Identify the type of milling operation represented in Figure 3(a) and Figure 3(b)? List at least 3 differences between the milling operations shown in Figure 3 (15 points) b) Why is it difficult to cut a plastic material using a bandsaw? (5 points) c) What is...
Q2) a) (a ) (b) Tool Direction Tool Direction Chip Flow Chip Flow Figure 3. (a)...
Q2) a) (a ) (b) Tool Direction Tool Direction Chip Flow Chip Flow Figure 3. (a) and (b) is the schematic of milling tool, showing the direction of cutting and the direction of chip flow Identify the type of milling operation represented in Figure 3(a) and Figure 3(b)? List at least 3 differences between the milling operations shown in Figure 3 (15 points) b) Why is it difficult to cut a plastic material using a bandsaw? (5 points) c) What...
Develop a spreadsheet model to determine how much a person or a couple can afford to...
Develop a spreadsheet model to determine how much a person or a
couple can afford to spend on a house. Lender guidelines suggest
that the allowable monthly housing expenditure should be no more
than 28% of monthly gross income. From this, you must subtract
total nonmortgage housing expenses, which would include insurance
and property taxes and any other additional expenses. This defines
the affordable monthly mortgage payment. In addition, guidelines
also suggest that total affordable monthly debt payments,
including housing...
6. Rent control a. serves as an example of how a social problem can be alleviated...
6. Rent control a. serves as an example of how a social problem can be alleviated or even solved by government policies. b. serves as an example of a price ceiling. c. is regarded by most economists as an efficient way of helping the poor. d. is the most efficient way to allocate scarce housing resources. why a is a wrong answer?
Explain the difference b/w the Free Cash flow stock valuation model and the Divided Discount model....
Explain the difference b/w the Free Cash flow stock valuation model and the Divided Discount model. What discount rate is used in the Free Cash flow model and what extra step do you need to take in order to calculate a stock price?
4. Effects of rent control Rent controls force landlords to price apartments below the equilibrium price...
4. Effects of rent control Rent controls force landlords to price apartments below the equilibrium price level. An immediate effect is a shortage (excess demand) of apartments, because the quantity of apartments demanded is greater than the quantity supplied at the regulated price. When cities prevent landlords from charging market rents, which of the following are common long-run outcomes? Check all that apply. a) Efficient use of housing space results. b) The quantity of available rental housing units falls. c)...
5) Using the closed-staff physician control model developed by Pauly-Redisch, explain how the optimal number of...
5) Using the closed-staff physician control model developed by Pauly-Redisch, explain how the optimal number of physicians is determined. Use a graph.
7. The market for rental housing in Berkeley is subject to rent-control. Before rent control, the compet itive equilibrium was at Pc and Q. Rent control limits the price a landlord can charge to P. The short-run supply curve is upwards sloping, and long-run supply is horizontal. (a) Is this a constant cost industry? Why? (b) What is the difference between the short-run and the long-run supply curve? (c) Comment on the efficiency of the competitive equilibrium. Is it Pareto...
Q2) a) (a) (b) Tool Direction Tool Direction Chip Flow Chip Flow Figure 3. (a) and (b) is the schematic of milling tool, showing the direction of cutting and the direction of chip flow Identify the type of milling operation represented in Figure 3(a) and Figure 3(b)? List at least 3 differences between the milling operations shown in Figure 3 (15 points) b) Why is it difficult to cut a plastic material using a bandsaw? (5 points) c) What is...
Q2) a) (a ) (b) Tool Direction Tool Direction Chip Flow Chip Flow Figure 3. (a) and (b) is the schematic of milling tool, showing the direction of cutting and the direction of chip flow Identify the type of milling operation represented in Figure 3(a) and Figure 3(b)? List at least 3 differences between the milling operations shown in Figure 3 (15 points) b) Why is it difficult to cut a plastic material using a bandsaw? (5 points) c) What...
Develop a spreadsheet model to determine how much a person or a
couple can afford to spend on a house. Lender guidelines suggest
that the allowable monthly housing expenditure should be no more
than 28% of monthly gross income. From this, you must subtract
total nonmortgage housing expenses, which would include insurance
and property taxes and any other additional expenses. This defines
the affordable monthly mortgage payment. In addition, guidelines
also suggest that total affordable monthly debt payments,
including housing...
5) Using the closed-staff physician control model developed by Pauly-Redisch, explain how the optimal number of physicians is determined. Use a graph.
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