Macroeconomics
Macroeconomics
11th Edition
ISBN: 9781260506891
Author: Colander
Publisher: MCG
Question
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Chapter 5, Problem 8IP

(a)

To determine

Rent control and the availability of apartments.

(b)

To determine

Side payments and the availability of apartments.

(c)

To determine

Impact of eliminating the rent control.

(d)

To determine

Political appeal for rent control.

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Students have asked these similar questions
How are rent controls likely to affect the market for housing in a city? Create a graph illustrating the market for apartments without rent controls to help with your answer. What does it mean, in terms of this market for the rent control to be effective? Would you recommend such a policy?
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?
The government often meddles in markets, using price ceilings and price floors and taxes which move the market away from free market equilibrium. Should the government meddle in markets? When should it meddle? Should there be rent controls or other price ceilings? Should the government set a minimum wage be $15?   Should the government control the price of life saving medicine, such as insulin? Should they set a price ceiling?  Or use taxes? How does elasticity of demand affect who will pay the tax? What are some reasons that the government should meddle in markets using price controls and taxes?
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