One way to balance the rental market is to raise rents. This will price some people...
One way to balance the rental market is to raise rents. This will price some people out of a particular area but will tend to bring supply and demand into equilibrium. Do you think that this is a "fair" way to bring the market to equilibrium?
Homework Answers
The rental market is affected and impacted by the local markets. The change in the local conditions can create either low or high demand for an area. Thus it depends on elasticity. When the price is inelastic then as demand falls price increase will increase revenue; and on contrary when the demand is elastic as prices increase then demand will fall. Thus when demand is inelastic high the rental market can increase the rents to maximize their return
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One way to balance the rental market is to raise rents. This
will price some people...
59. Market equilibrium A market equilibrium is a quantity-price pair in which: A. The government equates the selling and buying price of The price is such that the quantity demanded is equal to t...
59. Market equilibrium A market equilibrium is a quantity-price pair in which: A. The government equates the selling and buying price of The price is such that the quantity demanded is equal to the The level of happiness among people is as high as possible. supplied quantity supp A price increase would cause people to want to buy 1 of the good. E. The supply curve and demand curve are equivalent. The Marginal Product of Labor (MPL) is equal to...
Suppose the current price in a market is below the equilibrium price. Af the current price...
Suppose the current price in a market is below the equilibrium price. Af the current price in the market ea. a shortage exists. Ob. a surplus exists. o . c. equilibrium exists d. disequilibrium exists in the market. ee.a and d The equilibrium price in a market is $10 and the equilibrium quantity is 100 units. The area of consumers surplus is Oa. the area above the supply curve, out to 100 units, and below $10. Ob. the area below...
1.) Efficiency The table below shows the supply and demand balance for the rental housing market...
1.) Efficiency The table below shows the supply and demand balance for the rental housing market in Riyadh. Supply and Demand for Houses in Riyadh Price (SAR per m2) Quantity Quantity demanded supplied ('000 houses) 1000 900 100 800 200 600 300 400 500 400 200 600 a.) Draw the supply and demand balance of the housing market in Riyadh. What is the equilibrium price and equilibrium quantity in the market? (1.5 Point) b.) In your graph, shade in and...
Each of the models of short-run aggregate supply is based on some market imperfection. In the...
Each of the models of short-run aggregate supply is based on some market imperfection. In the sticky-price model, the imperfection is that: Select one: a. some firms do not adjust their prices instantly to changes in demand. b. the real wage adjusts to bring labor supply and labor demand into equilibrium c. contracts and arrangements may prevent nominal wages from adjusting rapidly to changing economic conditions. d. firms confuse changes in the overall level of prices with changes in relative...
What will be the long-run price in this market? Question 2: Assume the current price of...
What will be the long-run price in this market? Question 2: Assume the current price of corn chips is S2 per packet. The demand elasticity is 1 (ignoring the negative sign) and current consumption (i.e. quantity demanded) is 40 million packets per week. Suppose that the manufacturer raises the price of corn chips to $4 per packet. a) Derive the demand equation. b) What will happen to weekly consumption as price increases to $4? c) Suppose the supply equation is...
the equilibrium Excess demand occurs when the actual price in some market is_ price. Select one: a. Excess demand...
the equilibrium Excess demand occurs when the actual price in some market is_ price. Select one: a. Excess demand is not linked to price but to quantity b. below c. equal to d. above A supply curve is a graphical illustration of the relationship between quantity supplied and Select one: a. demand. b. price. c. cost of production d. quantity demanded.
An increase in demand would enable a monopolist to raise its price while reducing its output....
An increase in demand would enable a monopolist to raise its price while reducing its output. True False When the expansion of an industry and increased demand for labor results in higher wages, the market supply of the good that the industry produces would become A. upward sloping B. Downward sloping Св Vertical C D Horizontal E None of the above The total producer surplus is measured by: CA. A the area between supply and demand curves. B. the difference...
15. Another supply and demand puzzle The market price of pizzas in a college town increased...
15. Another supply and demand puzzleThe market price of pizzas in a college town increased recently, and the students in an economics class are debating the cause of the price increase. Some students suggest that the price increased because several pizza parlors in the area have recently gone out of business. Other students attribute the increase in the price of pizzas to a recent increase in college student enrollment.The first group of students thinks the increase in the price of...
15. Another supply and demand puzzle The market price of calzones in a college town increased...
15. Another supply and demand puzzleThe market price of calzones in a college town increased recently, and the students in an economics class are debating the cause of the price increase. Some students suggest that the price increased because several pizza parlors in the area have recently gone out of business. Other students attribute the increase in the price of calzones to a recent increase in college student enrollment.The first group of students thinks the increase in the price of...
Suppose that the market inverse demand and supply schedules for rental apartments in the city of...
Suppose that the market inverse demand and supply schedules for rental apartments in the city of Auckland are as given by the following equations: Demand: P = 2700 – 0.12QD Supply: P = –300 + 0.12QS What is the market equilibrium rental price per month and the market equilibrium number of apartments demanded and supplied? Show on graph If the local authority can enforce a rent-control law that sets the maximum monthly rent at $900, will there be a...
59. Market equilibrium A market equilibrium is a quantity-price pair in which: A. The government equates the selling and buying price of The price is such that the quantity demanded is equal to the The level of happiness among people is as high as possible. supplied quantity supp A price increase would cause people to want to buy 1 of the good. E. The supply curve and demand curve are equivalent. The Marginal Product of Labor (MPL) is equal to...
Suppose the current price in a market is below the equilibrium price. Af the current price in the market ea. a shortage exists. Ob. a surplus exists. o . c. equilibrium exists d. disequilibrium exists in the market. ee.a and d The equilibrium price in a market is $10 and the equilibrium quantity is 100 units. The area of consumers surplus is Oa. the area above the supply curve, out to 100 units, and below $10. Ob. the area below...
1.) Efficiency The table below shows the supply and demand balance for the rental housing market in Riyadh. Supply and Demand for Houses in Riyadh Price (SAR per m2) Quantity Quantity demanded supplied ('000 houses) 1000 900 100 800 200 600 300 400 500 400 200 600 a.) Draw the supply and demand balance of the housing market in Riyadh. What is the equilibrium price and equilibrium quantity in the market? (1.5 Point) b.) In your graph, shade in and...
Each of the models of short-run aggregate supply is based on some market imperfection. In the sticky-price model, the imperfection is that: Select one: a. some firms do not adjust their prices instantly to changes in demand. b. the real wage adjusts to bring labor supply and labor demand into equilibrium c. contracts and arrangements may prevent nominal wages from adjusting rapidly to changing economic conditions. d. firms confuse changes in the overall level of prices with changes in relative...
What will be the long-run price in this market? Question 2: Assume the current price of corn chips is S2 per packet. The demand elasticity is 1 (ignoring the negative sign) and current consumption (i.e. quantity demanded) is 40 million packets per week. Suppose that the manufacturer raises the price of corn chips to $4 per packet. a) Derive the demand equation. b) What will happen to weekly consumption as price increases to $4? c) Suppose the supply equation is...
the equilibrium Excess demand occurs when the actual price in some market is_ price. Select one: a. Excess demand is not linked to price but to quantity b. below c. equal to d. above A supply curve is a graphical illustration of the relationship between quantity supplied and Select one: a. demand. b. price. c. cost of production d. quantity demanded.
An increase in demand would enable a monopolist to raise its price while reducing its output. True False When the expansion of an industry and increased demand for labor results in higher wages, the market supply of the good that the industry produces would become A. upward sloping B. Downward sloping Св Vertical C D Horizontal E None of the above The total producer surplus is measured by: CA. A the area between supply and demand curves. B. the difference...
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