EBK FOUNDATIONS OF ECONOMICS
8th Edition
ISBN: 8220103632225
Author: PARKIN
Publisher: PEARSON
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Chapter 7, Problem 1MCQ
To determine
To choose: The appropriate option to fill in the blanks in the given statement.
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5
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A. What is the market equilibrium rental price per month and the market equilibrium number of apartments demand and supplied?
market equivalent rental price is:
______ per month
B. If the local government can enforce a rental control law that sets the maximum monthly rent at $2250 will there be a surplus or a shortage? ______
Of how may units
______ apartments per month
How many units will actually be rented each month?
________ apartments
C. Suppose that a new government is elected that wants to keep out the poor. It declares that the minimum rent that can be charged is $3,250 per month. If the government can enforce that price floor will there be a surplus or a shortage? _______
Of how many units?
_______ apartments per month
how many units will actually be rented each month?
_______ apartments 

Market for Product X
Price floor
III
IV
Quantity
Which numeral represents the equilibrium price of Product X?
Price
S.
Due to the implication of price ceiling lead to the producer cannot increase the price. Who will benefit from it and what are the advantages.
Chapter 7 Solutions
EBK FOUNDATIONS OF ECONOMICS
Ch. 7 - Prob. 1SPPACh. 7 - Prob. 2SPPACh. 7 - Prob. 3SPPACh. 7 - Prob. 4SPPACh. 7 - Prob. 5SPPACh. 7 - Prob. 6SPPACh. 7 - Prob. 7SPPACh. 7 - Prob. 8SPPACh. 7 - Prob. 9SPPACh. 7 - Prob. 10SPPA
Ch. 7 - Prob. 11SPPACh. 7 - Prob. 1IAPACh. 7 - Prob. 2IAPACh. 7 - Prob. 3IAPACh. 7 - Prob. 4IAPACh. 7 - Prob. 5IAPACh. 7 - Prob. 6IAPACh. 7 - Prob. 7IAPACh. 7 - Prob. 8IAPACh. 7 - Prob. 9IAPACh. 7 - Prob. 1MCQCh. 7 - Prob. 2MCQCh. 7 - Prob. 3MCQCh. 7 - Prob. 4MCQCh. 7 - Prob. 5MCQCh. 7 - Prob. 6MCQCh. 7 - Prob. 7MCQCh. 7 - Prob. 8MCQ
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Similar questions
- Question Calculate the new producer Surplusarrow_forwardAssess the effects of Price ceiling. please provide with graph n detail answer.minimum 500 words countarrow_forwardHow does the introduction of a price ceiling in a rental market affect the availability of rental properties? A. It increases the availability of rental properties. B. It decreases the availability of rental properties. C. It has no effect on the availability of rental properties. D. It increases the quality of rental properties.arrow_forward
- With a rent ceiling set below the equilibrium rent,i. all renters are able to rent apartments at a lower rent.ii. there is a shortage of apartments.iii. the quantity of apartments supplied does not change because buildings cannot be moved. Group of answer choices i only ii only iii only ii and iii i, ii, and iiiarrow_forwardB. The table below shows the demand for and supply of rental housing in Kuala Lumpur. The city government is considering imposing a rent ceiling of RM700 a month. Help the government to analyze the effects of the proposed rent ceiling. Quantity Quantity supplied (units per month) Rent demanded (RM per month) (units per month) 1,200 1,000 500 600 100 700 800 200 800 600 300 900 1,000 400 200 400 500 1,100 600 i. Draw the demand and supply curves. With no rent ceiling, what is the rent and how many apartments are rented? ii. With the rent ceiling, what would be the rent and how many apartments would be available for rent? Will there be a shortage or surplus in the rented apartment market? Explain. i. If a black market develops after the rent ceiling is implemented, what would the black- market rent be? Explain your answer.arrow_forwardFIGURE 4-5 Maximum allowed price PE Qo Quantity of Gasoline Refer to Figure 4-5. What is occurring in the market for gasoline? A price ceiling has been imposed resulting in a surplus of gasoline. OA price floor has been imposed resulting in a shortage of gasoline. A price floor has been imposed resulting in a surplus of gasoline. A price ceiling has been imposed resulting in a shortage of gasoline. Price of Gasolinearrow_forward
- Suppose the government establishes a ceiling on price of rental accomodation. In this case, Select one: a. Those people who obtain rental units will benefit b. Construction of new rental units will be encouraged c. A surplus of rental units will develop d. The market for rental housing is unaffected e. The current stock of rental housing will be better maintained as there is a shortage of housingarrow_forwardIn 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 samearrow_forwardPRICE Graph (a) QUANTITY Supply Price Ceiling Demand PRICE both graph (a) and graph (b). Oneither graph (a) nor graph (b). graph (a) only. Ograph (b) only. Graph (b) Refer to Figure 2. A non-binding price ceiling is shown in -supply Prick Chinoarrow_forward
- How do price ceilings in the rental housing market affect tenants? a. Since price ceilings keep rents from rising above a certain level, the net gain to tenants is positive. b. Since the supply of rental housing is inelastic in the short run, tenants are not affected by a price ceiling. c. Tenants benefit from price ceilings since landlords have incentives to improve the quality of existing rental housing d. Tenants are worse off from price ceilings since the supply of rental housing falls in the long run.arrow_forward15. Nizwa Municipality is fixed the maximum rent to be paid by a tenant in Nizwa; this is an example of _________. a. Price floor b. Price ceiling c. Market price d. Supplier pricearrow_forwardIf a price ceiling is set below the equilibrium price in a market, A. raioning will be necessary. B. surpluses of the commodity will develop. C. the quantity demanded will exceed the quantity supplied. D. tje quantity supplied willexceed the quantitiy demanded.arrow_forward
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