3. The elected officials in a university town are concerned about the "exploitative" rents being charged...
rents being charged to uni The authorities are considering the imposition of a S350 per month rent ceiling on apartments in town. The demand and supply curves have been estimated as: OD-5,600- 8P Qs 500+4P Note: In this analysis apartments are treated as identical. a. Calculate the equilibrium price and quantity that would prevail without the price ceiling. b. Calculate producer and consumer surplus at this equilibrium. Present your calculations and a diagram for both. c. What quantity will eventually...
1 Suppose the demand for shoes is given by: QD= 210 -2P. The supply of shoes is given by: QS= 9P -120. Calculate the Gains from Trade (also known as Economic Surplus) that would exist in this market in a competitive equilibrium. 2 Suppose the demand for jackets was given by: QD= 140 -0.4P. The supply of jackets is given by: QS= 4P -80. Suppose the price was $49 per jacket. Calculate whether there is a surplus or shortage of...
Chapter overview 1. Reasons for international trade Resources reasons Economic reasons Other reasons 2. Difference between international trade and domestic trade More complex context More difficult and risky Higher management skills required 3. Basic concept s relating to international trade Visible trade & invisible trade Favorable trade & unfavorable trade General trade system & special trade system Volume of international trade & quantum of international trade Commodity composition of international trade Geographical composition of international trade Degree / ratio of...