Suppose the government decides to impose a rent control policy. The government sets a maximum price on apartments that is above the equilibrium price. You accurately predict that a.the law will create a surplus of apartments. b.landlords are less likely to do routine maintenance work in the apartments. c.the law will have no economic impact. d.renters will find that landlords start offering to furnish the apartments.

Suppose the government decides to impose a rent control policy. The government sets a maximum price on apartments that is above the equilibrium price. You accurately predict that a.the law will create a surplus of apartments. b.landlords are less likely to do routine maintenance work in the apartments. c.the law will have no economic impact. d.renters will find that landlords start offering to furnish the apartments.

Microeconomics A Contemporary Intro

10th Edition

ISBN:9781285635101

Author:MCEACHERN

Publisher:MCEACHERN

Chapter4: Demand, Supply, And Markets

Section: Chapter Questions

Problem 22PAE

See similar textbooks

Similar questions

problem 1. Think about the market for parking spaces in downtown LA. There is little flexibility in terms of changing the number of parking spaces provided. On the other hand, there are many substitutes for parking in the city such as taking the train or parking just outside the city and taking a bus. a. Please draw the market for parking spaces in downtown LA. b. If a tax is applied on parking spaces, what happens to the quantity? c. Who pays most of the tax burden? problem 2 Suppose the California legislature passed a sweeping law to lower the number of regulations for building homes such as increasing the parking requirements and setback requirements. Suppose there is a housing tax. a. What is the effect of this law on the PES for housing? b. What effect would this law have on the tax burden for buyers?
The price of apples that shane buys monthly drops from $8 to $4, the equilibrium quantity is 4. What would be the increase amount of consumer surplus?
Don't use chatgpt, I will 5 upvotes The diagram below shows the market for cheddar cheese. The government has imposed a price ceiling in the market at $2.4. Calculate the consumer surplus
A. Calculate: the consumer surplus the producer surplus dead weight loss B. Which of the two options listed in the photo would be preferred by the producers? Which of the two options listed in the photo would be preferred by society as a whole?
Graph the supply curve and if the price is 3 and supply is 9 units please shade the consumer surplus and explain. Price 0 1 2 3 4 5 Supply (A) 0 3 6 9 12 15
Question A winery produce x thousand bottles of premium wine when the price for each bottle is S(x)=1.4x^2-50x+1480 The monthly demand for the bottles of wine is related to the price by D(x)=-x^2+34.8x+1928 A Find the consumer surplus and producer surplus when the market is at equilibrium. B Find the change in consumer and producer surplus when the price increases by $20. Explain what happened. (Hint because it is a price increase and consumers will buy less use the demand equation to find the new quantity in the market. Please answer all parts.
You’d be willing to pay $200 for a daylong admission ticket to a theme park. The cost of the ticket is $120. Your consumer surplus is:
Q)Using this diagram calculate : 1) The producer surplus after change 2) The total surplus after the change Explains it correctly
The cost of producing flat-screen TVs has fallen over the past decade. Let's consider some implications of this fact.a. Draw a supply-and-demand diagram to show the effect of falling production costs on the price and quantity of flat-screen TVs sold.b. In your diagram, show what happens to consumer surplus and producer surplus.c. Suppose the supply of flat-screen TVs is very elastic. Who benefits most from falling production costs—consumers or producers of these TVs?
The screenshot shows a graph market for movies at equilibrium: A) Calculate Consumer, producer, and total surplus. b) Suppose in response to public outcry the government imposed a price ceiling of $8 in this market. Explain the impact on the total surplus and market efficiency.
In a competitive market, if the government imposes a price ceiling below the equilibrium price, what is likely to happen?A. Surplus of goods B. Shortage of goods C. No change in quantity exchangedD. Price remains the same