l Verizon10:56 PMncuone.ncu.eduanswers to the following questions.2.Are consumers of rental-housing in Prescottwell-served by this price ceiling policy? Providea careful economic analysis in support of yourclaim. In particular, discuss whathappens if a regulated price is set that isnot equal to the equilibrium price.3. Suppose that the Council is concerned thatlandlords will allow the quality of their rentalunits to deteriorate following the imposition ofthe ceiling price. What can you infer about thelevel of quality that landlords' provision willallow if consumers are worse off, following theimposition of the ceiling price? Provide acareful economic analysis in support of yourclaim.Suppose now that the proposal before theCity Council contemplates imposing a price4.ceiling on apartment rentals, but not on houserentals. Would owners of rental houses inPrescott be likely to support this proposal, orwould they prefer the status quo (i.e., no priceceilings)? Provide the economic rationale foryour answer. (In answering this question, youshould ignore all supply-side considerations. Inother words, just assume that supply adjustsfully to accommodate demand.)

Dear student, You have asked multiple questions in a single post. I am answering question number 2…

2. Are consumers of rental-housing in Prescott well-served by this price ceiling policy? Provide a careful economic analysis in support of your claim. In particular, discuss what happens if a regulated price is set that is not equal to the equilibrium price.

2. Are consumers of rental-housing in Prescott well-served by this price ceiling policy? Provide a careful economic analysis in support of your claim. In particular, discuss what happens if a regulated price is set that is not equal to the equilibrium price.

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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18-19. In the competitive market for white sugar, consumer demand is given by P=100-0.050 and suppliers' behaviour is represented by the supply curve of P=1+0.005Q, where P is measured in dollars and Q is measured in kilos per month. Questions 17 through 19 refer to this market. 18. Imagine now that the government imposes a price ceiling of $5.00 per kilo on sugar, and that the ceiling is obeyed by all market participants. In the resulting equilibrium the total number of kilos of sugar exchanged in the market is equal to: A) 2100 G) 800 B) 2000 H) 600 A) $5 G) $70 C) 1900 I) 400 B) $10 H) $80 19. Suppose suppliers obey the price ceiling but consumers sell sugar on a black market. What will the black market price for sugar be? D) 1400 E) 1200 J) None of the above C) $10.50 I) $21 E) $50 F) 1000 D) $40 J) None of the above F) $60
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In Figure 1, suppose the marginal value for gasoline falls by $6 for every quantity demanded for all gas stations in the market. Next, assume that the government enacts a price ceiling of $2. What is the loss in consumer surplus? A) $6B) $2C) $12D) There is no consumer welfare loss because prices are lower.E) There is not enough information to calculate.
questions 17-20
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