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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...
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A rent ceiling
The graph below shows a market for rental housing. Suppose the
city government implements a rent ceiling at $600 per month.
In the scenario above, if in addition to the explicit legal
price tenants pay the full potential implicit opportunity costs of
time and trouble associated with the rent ceiling, their loss
resulting from the rent control is $_____ million?
In the scenario above, if tenants pay the full economic price of
an apartment, what is the...
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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) The quantity of available rental housing units falls.
B) The future supply of rental housing units increases....
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The Metropolitan Government plans to amend its rent control ordinance to allow that all "new" rental units be supplied and rented free of rent control, while upholding the rent control on all existing (old) rental units at p = $2.00. QUESTIONS (REVISED RENT CONTROL): • Indicate in the diagram, the rental price (p') for a new unit and the number of new units (Q') in equilibrium of the market for rental housing. Shade and mark the area corresponding to the...
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Back to Assignment Attempts: Do No Harm: /1 3. 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. The future supply of rental housing units increases. Black...
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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)...
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Thank you for your help.
Exercise 2: Price Ceilings-Rent Control 1. Let's say a nice one-bedroom apartment in your town has a market rent of $1,000. At that price, 20,000 units are available for rent in your town. Please construct a market model for this rental housing using the information. Remember, the demanders are tenants and the suppliers are landlords. 2. Next, impose a price ceiling of $750.00 for all one-bedroom apartments in the market. Don't worry too much about...
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THUMBS UP ? ? ? ? ? for correct answer.
17
QUESTION 13 A competitive market economy is unlikely to provide an efficient quantity of some public goods because: the technology involved in the production of public goods makes it difficult for private firms to produce them even though, once produced, they could be marketed efficiently. Ob.only the government has the vast resources necessary to produce public goods. C. private production of public goods generally results in a large amount...
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Exhibit 4-4 Supply and demand curves for good X Graph C Graph B Graph A Price (dollars) Price (dollars) Price (dollars) Quantity (per year) Quantity (per year) Quantity (per year) 7. A decrease in buyers' income, assuming good X is a normal good, combined with a decrease in the wage rate paid to workers producing good X would be represented by which of the following changes in equilibrium shown in Graph C of Exhibit 4-4? a. E, to E. b....
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Read carefully the attached document and then post your comments
bearing in mind the following questions:
1- What are the pros and cons of rent controls?
2- Why economists disagree on the usefulness of rent
control?
3- Do you believe rent control can help the poor?
Do rent controls work_ - The Economist explains.pdf
If no link is opened containing the answers to be extracted
This is the content ..
Do rent controls work? Publication info: The Economist (Online)
;...
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...
A rent ceiling
The graph below shows a market for rental housing. Suppose the
city government implements a rent ceiling at $600 per month.
In the scenario above, if in addition to the explicit legal
price tenants pay the full potential implicit opportunity costs of
time and trouble associated with the rent ceiling, their loss
resulting from the rent control is $_____ million?
In the scenario above, if tenants pay the full economic price of
an apartment, what is the...
The Metropolitan Government plans to amend its rent control ordinance to allow that all "new" rental units be supplied and rented free of rent control, while upholding the rent control on all existing (old) rental units at p = $2.00. QUESTIONS (REVISED RENT CONTROL): • Indicate in the diagram, the rental price (p') for a new unit and the number of new units (Q') in equilibrium of the market for rental housing. Shade and mark the area corresponding to the...
Back to Assignment Attempts: Do No Harm: /1 3. 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. The future supply of rental housing units increases. Black...
Thank you for your help.
Exercise 2: Price Ceilings-Rent Control 1. Let's say a nice one-bedroom apartment in your town has a market rent of $1,000. At that price, 20,000 units are available for rent in your town. Please construct a market model for this rental housing using the information. Remember, the demanders are tenants and the suppliers are landlords. 2. Next, impose a price ceiling of $750.00 for all one-bedroom apartments in the market. Don't worry too much about...
THUMBS UP ? ? ? ? ? for correct answer.
17
QUESTION 13 A competitive market economy is unlikely to provide an efficient quantity of some public goods because: the technology involved in the production of public goods makes it difficult for private firms to produce them even though, once produced, they could be marketed efficiently. Ob.only the government has the vast resources necessary to produce public goods. C. private production of public goods generally results in a large amount...
Exhibit 4-4 Supply and demand curves for good X Graph C Graph B Graph A Price (dollars) Price (dollars) Price (dollars) Quantity (per year) Quantity (per year) Quantity (per year) 7. A decrease in buyers' income, assuming good X is a normal good, combined with a decrease in the wage rate paid to workers producing good X would be represented by which of the following changes in equilibrium shown in Graph C of Exhibit 4-4? a. E, to E. b....