41Rental HousingPriceMarketF$2,250I ofE$1,500BPrice$750Ceiling2,0004,0006,000 Quantity (Q)In the market for rental housing shown in the diagram above, the government has imposed a Price Ceiling at $750. Which of the followingwould be true?Select one:а.There will be a shortage of 4,000 housing units.b. There will be a shortage of 2,000 housing units.c. There will be neither a shortage nor a surplus because the Price Ceiling will be non-binding.d. There will be a surplus of 2,000 housing units.

Price Ceiling refers to the maximum legal price that a seller can charge from the buyer. The…

Answered: Rental Housing Price Market $2,250…

Principles of Macroeconomics (MindTap Course List)

8th Edition

ISBN:9781305971509

Author:N. Gregory Mankiw

Publisher:N. Gregory Mankiw

Chapter6: Supply, Demand, And Government Policies

Section: Chapter Questions

Problem 10PA

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In a market where the supply curve is perfectly inelastic how does an excise tax affect the price paid by consumers and the quantity bought and sold?
A $1 per unit tax levied on consumers of a good isequivalent toa. a $1 per unit tax levied on producers of the good.b. a $1 per unit subsidy paid to producers of the good.c. a price floor that raises the good’s price by $1 perunit.d. a price ceiling that raises the good’s price by $1per unit.
Alow-incomecountrydecidestosetapriceceiling on bread so it can make sure that bread is affordable to the poor.Table 3.11 provides the conditions of demand and supply. What are the equilibrium price and equilibrium quantity before the price ceiling? What will the excess demand or the shortage (that is, quantity demanded minus quantity supplied) be if the price ceiling is set at $2.40? At $2.00? At $3.60?
Suppose the demand and supply curves are described byMC = 1.11 + 0.89QWTP = 8.92 - 0.83QSuppose the price is 6.37.A. Given the price above, is there a shortage or a surplus? Surplus Shortage B. What is the value of the shortage or surplus? Only enter a positive number.
4.Which of the following will cause the supply of a product to decrease? a) governent subsidy for the product b)an increase in consumer' income c) a decrease in the price of the product d)an increase in the excise tax on the product
Demand and supply equations for housing market per month are given below.• Demand for housing: ?? = 2500 − 0.5 ?• Supply of housing: ?? = −500 + ?a) Draw the demand and supply curves for housing market in one graph.b) Find the equilibrium quantity and price for housing.c) Compute the consumer and producer surplus in equilibrium. d) Suppose that the government set a rent ceiling at $1800. What are the quantities of housing supplied and demanded at this price? In this case, is there a shortage or surplus of houses?e) How does the price ceiling affect the efficiency in the housing market?f) Calculate the deadweight loss in the housing market after the price ceiling is imposed by the government.g) Calculate the potential spending for housing search activities
consider the inverse demand and supply for apples to be given by P= 30-3Qd and P=6+Qs, and the government imposes a price ceiling of $10 to pretect consumers. this will increase the consumer surpls by ___ and create an excess demand of ___. a) $18.5, 4.67 units. b) $12.7, 2.67 units c) $20.4, 3.25 units d) $32.8, 5.32 units
Suppose that the government has been supporting the price of corn. It's free market price is $2.50 per bushel, but the govt. has been setting a support price of $3.50 per bushel. Which of the following are ways that the government might try to reduce the size of the corn surplus? (One or more) A: Decrease the suppport price B: Institute an acreage allotment program C: Decrease demand by taxing corn purchases D: Raise the support price.
Q_{D}=400-20 P \\ Q_{S}(\text { Domestic })=30 P-30 \\ Q_{S}(\text { Imported })=10 P-50 \end{array} \] The demand and supply functions for productAare given above. a. The government imposes a price ceiling at 4 . In this case, specify the market price, quantity. In this case, is there either excess supply or excess demand? How much? b. The government imposes a price floor at 9 . In this case, specify the market price, quantity. In this case, is there either excess supply or excess demand? How much? c. The government wants to impose taxes on this product. If the tax is 3 for each sale, find the new market price and quantity. how much of this quantity is coming from imported? d. According to the policy applied in the (c), find the tax share of suppliers and consumers. e. In order to protect the domestic producer, the government imposed tax=2on the imported product. Under new policy, calculate market price and quantity. f. According to the policy applied in the (e), has the policy of the…
Many governments subsidise electric vehicles. Draw two sup- ply and demand diagrams (one for electric vehicles and one for petrol- powered vehicles) to show the impact of an electric vehicle subsidy. As- sume that an increase in electric vehicles sales reduces petrol powered vehicles by the same amount. On these diagrams show: (a) The quantity of both types of vehicles before the subsidy. (b) The quantity of both types of vehicles after the subsidy. (c) The deadweight losses in both markets before and after the subsidy. 4. is a fuel excise or an electric vehicle subsidy a better policy response to address externalities associated with driving? Your answer should draw on the answers above and could also include: Which policy is simpler to administer. How the two policies impact use of other forms of transport (like public transport or riding a bike). Which policy is fairer. Any additional information that you would like to know to inform your decision Note:- Do not provide…
If the government sets a price ceiling of $25, how much dead weight will be created? (a) $500 (b) $250 (c) $350 (d) $700 If the government sets a price ceiling at $45, the market will experience: (a) a shortage of 25 units. (b) a surplus of 25 units. (c) a shortage of 60 units. (d) a surplus of 60 units. (e) neither a shortage nor a surplus.
Give typing answer with explanation and conclusion In an effort to curb planetary obesity, authorities levy a tax of $20 per unit of lunar candy. How much of this tax is borne by the sellers? That is, by how much does the seller’s price change? demand - q = 600 − 2p supply - q = 2p − 400 Equilibrium price - 250 Equilibrium Quantity- 100 Use the equation Ps= Pd+ Tax to solve ANSWER IS 10

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