The figure below shows the market for apartments in downtown Rochester.
a) Suppose a rent ceiling of $600 is imposed. What is the quantity of apartments supplied after the rent ceiling?
b) What is the quantity of apartments demanded after the rent ceiling is imposed?
c) What is the change in producer surplus?
d) What is the change in consumer surplus?
e) The deadweight loss from the policy is
f) Suppose instead the rent ceiling is set at $1,500. The deadweight loss from the policy is
Homework Answers
a) If rent ceiling is put at $600, the quantity of appartments supplied after the rent ceiling is 40.
b) The quantity of appartments demanded after the rent ceiling is imposed is 120.
c) Change in Producer Surplus= {0.5(600–0)×40}–{0.5(1200–0)×80} = –$36000
d) Change in Consumers Surplus={ 0.5×(2700)×40}–0.5×(2100–1200)×80= $18000
e) Deadweight Loss= 0.5(1800–600)×40= $24000
f) Price ceiling is set above Equilibrium price. Hence, it is a non binding price ceiling. Therefore, Deadweight Loss would be zero when the rent ceiling is set at $1500.
Add Answer to:
The figure below shows the market for apartments in downtown
Rochester.
a) Suppose a rent ceiling...
Q8 (1 point). What is the change in producer surplus? PS decreases by 36,000. PS decreases...
Q8 (1 point).
What is the change in producer surplus?
PS decreases by 36,000.
PS decreases by 24,000.
PS increases by 36,000.
PS increases by 24,000.
Q9 (1 point).
What is the change in consumer surplus?
CS decreases by 12,000.
CS increases by 12,000.
CS increases by 36,000.
CS decreases by 36,000.
Q10 (1 point).
The deadweight loss from the policy is
12,000.
1 trillion.
36,000.
24,000.
Q11 (1 point).
Suppose instead the rent ceiling is set at $1,500. The...
Figure 4-10 Figure 4-10 shows the market for apartments in Bay City. Recently, the government imposed...
Figure 4-10 Figure 4-10 shows the market for apartments in Bay City. Recently, the government imposed a rent ceiling at RO. 1) Refer to Figure 4-10. What is the area that represents the portion of producer surplus transferred to consumers as a result of the rent ceiling? A) D+E B) D+F CD DF 2) Refer to Figure 4-10. What area represents the deadweight loss after the imposition of the ceiling? A) G+ H B ) J+ H C ) C...
Suppose in response to the COVID-19 pandemic, the government imposes a rent ceiling of $1,000 per...
Suppose in response to the COVID-19 pandemic, the government imposes a rent ceiling of $1,000 per month. [Questions 2-6 are related.] Refer to the figure. Suppose landlords ignore the law and rent their apartments for the highest rent they can get. What is the highest rent they can get per month? Price (dollars per month) $2,500 Supply 2,000 1,500 1,000 500 Demand 200 400 600 Quantity (apartments) OA. $1,000 OB. $1,500 C. $2,000 OD. $2,300 Reset Selection Refer to the...
Figure 4-5 Price (dollars per month $2,500 2.000 Demand 0 200400 800 Quantity (apartments) Figure 4-5...
Figure 4-5 Price (dollars per month $2,500 2.000 Demand 0 200400 800 Quantity (apartments) Figure 4-5 shows the market for apartments in Springfield. Recently, the government imposed a rent ceiling of $1.000 per month. 2) 2) Refer to Figure 4-5. Suppose that instead of a rent ceiling, the government imposed a price floor of 12,000 per month for apartments. What is the quantity of apartments demanded at the new price? B) 200 C) 300 D) 500 A) 3) Refer to...
Demand for apartments in a certain town is D(x) = 1700 -x, and the supply is...
Demand for apartments in a certain town is D(x) = 1700 -x, and the supply is S(x) = 600+ 9x, where x is the number of apartments, in hundreds, and D(x) and S(x) are the rent in dollars per month, per apartment. a) Find the equilibrium point. b) Find the consumer surplus and producer surplus. c) Suppose a maximum rent of $1095 per month is imposed by the town council. Find the point (*c. PC) d) Find the new consumer...
100,000 150,000 175,000 Quantity Refer to Figure 3. Suppose a rent ceiling is imposed in Statesboro...
100,000 150,000 175,000 Quantity Refer to Figure 3. Suppose a rent ceiling is imposed in Statesboro by the Mayor of Statesboro. Assume that prior to the price ceiling the equilibrium price for rents was $900 - P2. However, he imposes the rent ceiling of $600 - P1. Georgia Southern University authorities have argued against this rent ceiling because they expect this to cause a black market rental rate to rise to $$1,100 = P3. They suspect that this will transfer...
A city the has the following market equilibrium for rental apartments. Use the graph to answer...
A city the has the following market equilibrium for rental apartments. Use the graph to answer the questions below Market for Rental Apartments Price 5315 500 1000 3400 Quantity et Rental Units (1) Find consumer surplus and the producer surplus that exist at the equilibrium rent of SS3 Is there a deadweight loss? Find if a * Consumer Surplus - Total art of A, B and C & Producer Supples = Totul ano of D, E, F * There is...
THANK YOU FOR YOUR HELP Unit 7-Market Intervention: Price Ceilings and Floors, Taxes Suppose that the...
THANK YOU FOR YOUR HELP
Unit 7-Market Intervention: Price Ceilings and Floors, Taxes Suppose that the demand curve for coffee is Q = 10-P and the supply curveis Q = P. Draw the supply and demand curves below. ܘ ܩ ܤ ܙ ܗ ܗ ܚ ܢ 1 2 3 4 5 6 7 8 9 10 1. What is the equilibrium price and quantity? 2. What is total surplus, consumer surplus, and producer surplus? 3. Suppose the government implemented a...
54. Suppose that the mayor of New York abolishes rent control. A friend of yours who lives in New York complains about the higher apartment rents that result. sult. This friend has never taken an apa...
54. Suppose that the mayor of New York abolishes rent control. A friend of yours who lives in New York complains about the higher apartment rents that result. sult. This friend has never taken an apartment market is now more efficient because rent control has been abolished In your an deadweight loss while rent control was in place and after it was abolished by referencing the areas in the figure class. Explain to your friend why the is, be sure...
Demand for apartments in a certain town is D(x) = 1164 - 2x, and the supply...
Demand for apartments in a certain town is D(x) = 1164 - 2x, and the supply is S(x) = 800 + 11x, where x is the number of apartments, in hundreds, and D(x) and S(x) are the rent in dollars per month, per apartment a) Find the equilibrium point b) Find the consumer surplus and producer surplus. c) Suppose a maximum rent of $998 per month is imposed by the town councl. Find the point (*c. Pc) d) Find the...
Q8 (1 point).
What is the change in producer surplus?
PS decreases by 36,000.
PS decreases by 24,000.
PS increases by 36,000.
PS increases by 24,000.
Q9 (1 point).
What is the change in consumer surplus?
CS decreases by 12,000.
CS increases by 12,000.
CS increases by 36,000.
CS decreases by 36,000.
Q10 (1 point).
The deadweight loss from the policy is
12,000.
1 trillion.
36,000.
24,000.
Q11 (1 point).
Suppose instead the rent ceiling is set at $1,500. The...
Figure 4-10 Figure 4-10 shows the market for apartments in Bay City. Recently, the government imposed a rent ceiling at RO. 1) Refer to Figure 4-10. What is the area that represents the portion of producer surplus transferred to consumers as a result of the rent ceiling? A) D+E B) D+F CD DF 2) Refer to Figure 4-10. What area represents the deadweight loss after the imposition of the ceiling? A) G+ H B ) J+ H C ) C...
Suppose in response to the COVID-19 pandemic, the government imposes a rent ceiling of $1,000 per month. [Questions 2-6 are related.] Refer to the figure. Suppose landlords ignore the law and rent their apartments for the highest rent they can get. What is the highest rent they can get per month? Price (dollars per month) $2,500 Supply 2,000 1,500 1,000 500 Demand 200 400 600 Quantity (apartments) OA. $1,000 OB. $1,500 C. $2,000 OD. $2,300 Reset Selection Refer to the...
Figure 4-5 Price (dollars per month $2,500 2.000 Demand 0 200400 800 Quantity (apartments) Figure 4-5 shows the market for apartments in Springfield. Recently, the government imposed a rent ceiling of $1.000 per month. 2) 2) Refer to Figure 4-5. Suppose that instead of a rent ceiling, the government imposed a price floor of 12,000 per month for apartments. What is the quantity of apartments demanded at the new price? B) 200 C) 300 D) 500 A) 3) Refer to...
Demand for apartments in a certain town is D(x) = 1700 -x, and the supply is S(x) = 600+ 9x, where x is the number of apartments, in hundreds, and D(x) and S(x) are the rent in dollars per month, per apartment. a) Find the equilibrium point. b) Find the consumer surplus and producer surplus. c) Suppose a maximum rent of $1095 per month is imposed by the town council. Find the point (*c. PC) d) Find the new consumer...
100,000 150,000 175,000 Quantity Refer to Figure 3. Suppose a rent ceiling is imposed in Statesboro by the Mayor of Statesboro. Assume that prior to the price ceiling the equilibrium price for rents was $900 - P2. However, he imposes the rent ceiling of $600 - P1. Georgia Southern University authorities have argued against this rent ceiling because they expect this to cause a black market rental rate to rise to $$1,100 = P3. They suspect that this will transfer...
A city the has the following market equilibrium for rental apartments. Use the graph to answer the questions below Market for Rental Apartments Price 5315 500 1000 3400 Quantity et Rental Units (1) Find consumer surplus and the producer surplus that exist at the equilibrium rent of SS3 Is there a deadweight loss? Find if a * Consumer Surplus - Total art of A, B and C & Producer Supples = Totul ano of D, E, F * There is...
THANK YOU FOR YOUR HELP
Unit 7-Market Intervention: Price Ceilings and Floors, Taxes Suppose that the demand curve for coffee is Q = 10-P and the supply curveis Q = P. Draw the supply and demand curves below. ܘ ܩ ܤ ܙ ܗ ܗ ܚ ܢ 1 2 3 4 5 6 7 8 9 10 1. What is the equilibrium price and quantity? 2. What is total surplus, consumer surplus, and producer surplus? 3. Suppose the government implemented a...
54. Suppose that the mayor of New York abolishes rent control. A friend of yours who lives in New York complains about the higher apartment rents that result. sult. This friend has never taken an apartment market is now more efficient because rent control has been abolished In your an deadweight loss while rent control was in place and after it was abolished by referencing the areas in the figure class. Explain to your friend why the is, be sure...
Demand for apartments in a certain town is D(x) = 1164 - 2x, and the supply is S(x) = 800 + 11x, where x is the number of apartments, in hundreds, and D(x) and S(x) are the rent in dollars per month, per apartment a) Find the equilibrium point b) Find the consumer surplus and producer surplus. c) Suppose a maximum rent of $998 per month is imposed by the town councl. Find the point (*c. Pc) d) Find the...
Most questions answered within 3 hours.
-
Using the Table and data below, create a procedure that accepts
product ID as a parameter...
asked 1 second from now -
Suppose X follows an exponential distribution with mean 7.5.
Determine the conditional probability P(x > 2.5...
asked 22 minutes ago -
Young softball batters are often instructed to “choke-up on the
bat” by their coach. In terms...
asked 26 minutes ago -
Suppose that you are an official with Mexico's economic
development agency. Write a one-page memo detailing...
asked 57 minutes ago -
If you were an international firm, why would you support the
concept of global free trade?...
asked 1 hour ago -
Cisco packet tracer
Q1) Do you get any changes of IP address when packet is
traversing...
asked 1 hour ago -
What is the pressure inside a 33.0 L container holding 106.4 kg
of argon gas at...
asked 2 hours ago -
Question no 2
A housekeeping support department budgets its costs at
SR 40,000 per month plus...
asked 2 hours ago -
A 1400Kg sports car accelerates from rest to 90km/h in 7.0s.
What is the average power...
asked 3 hours ago -
For the following reaction, 0.128 moles of
potassium hydrogen sulfateare mixed with
0.504 moles of potassium...
asked 6 hours ago -
1. What is the present value of $400, three years in the future
if the interest...
asked 7 hours ago -
The labor force minus the number of employed equals the number
of unemployed.
a. True
b....
asked 9 hours ago