What are the main goal or goals of rent control (holding rent below equilibrium rent; price ceilings.)? Be precise. In other words, what is the overall social/economic purpose or objective of rent control or rent stabilization?
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- 7. What solution are economists more likely to advocate for instead of rent control?Are rent control laws helping/hurting the housing market? What are some of the advantages and disadvantages of rent control? Apart from making and enforcing laws, how can the government enter the housing market system to prevent high rents?Describe any Pros or Cons to Rent Control in the Short-Run.
- The difference between rent control and rent stabilization in New York is . . .(a) Rent control was implemented only in Manhattan, where rents were rising most sharply, whilerent stabilization primarily affects the outer boros.(b) Rent stabilization insures that rents neither rise nor fall too fast, whereas rent control only con-strained increases in rents.(c) Rent stabilization was replaced by rent control in 1974 in order to make the rent laws stricter.(d) None of the above.Identify and briefly explain 2 advantages and 2 disadvantages of government legislated rent control. (I.E. A price ceiling)Since price ceiling regulations result in chronic shortages, what recommendations do you have for solving the housing crises in big cities? Instead of government imposing price control on rent, what can society do to handle this problem?
- Distinguish between market failure and government failure. Does rent-seeking behavior occur only as a result of government failure? Explain your answer.Under rent control, bribery is a potential mechanism toAssume that the government sets a binding price celling on the interest rate that banks charge on loans Explain carefully the impact of this policy on the financial markets. Assume that the government sets a price floor in the market for wheat and the price floor is set below the market equilibrium of wheat. Discuss carefully the effectiveness of this policy on the market.
- Use the accompanying graph to answer these questions. a. Suppose demand is D and supply is S0. If a price ceiling of $6 is imposed, what are the resulting shortage and full economic price? b. Suppose demand is D and supply is S0. If a price support of $12 is imposed, what is the resulting surplus? What is the cost to the government of purchasing any and all unsold units? c. Suppose demand is D and supply is S0 so that the equilibrium price is $10. If an excise tax of $6 is imposed on this product, what happens to the equilibrium price paid by consumers? The price received by producers? The number of units sold? d. Calculate the level of consumer and producer surplus when demand and supply are given by D an respectively. e. Suppose demand is D and supply isb.If you were a landlord, why would you be against rent control? Explain your answer.Part 1. The figure below shows the market for rides are services during a typical day. Assume that d1 represents the demand for rides during normal periods. Therefore, on a normal day the normal price for a ride is $16 and 6000 rides are taken. If congress bans surge pricing, it is effectively imposing a price ceiling of $16 shown by the horizontal line labeled PC. Suppose that there is an increase in the demand for rides. Use the drag tool to illustrate the effect of the surge ban, assuming it leads to a shortage of 4000 rides. Part 2. Consider alternative modes of transportation to rides are services such as taxi cabs. How would the ban on surge pricing impact the market for rides by taxi cabs? Use the drag tool to illustrate on the market graph below.