4. Effects of Rent Control Rent controls force landlords to price property below the equilibrium price level. An effect of this is to create a shortage (excess demand) of rental property, as the quantity of rental property demanded is greater than the quantity supplied at that price. When legislation prevents landlords from charging market rents, what can happen in the long run as a result? Check all that apply O Non-price methods of rationing emerge. O The future supply of rental housing units increases. O Efficient use of housing space results. O Landlords earn lower profits from renting housing units, but the rent charged has no effect on either the quanbity or quality of rental units.

4. Effects of Rent Control Rent controls force landlords to price property below the equilibrium price level. An effect of this is to create a shortage (excess demand) of rental property, as the quantity of rental property demanded is greater than the quantity supplied at that price. When legislation prevents landlords from charging market rents, what can happen in the long run as a result? Check all that apply O Non-price methods of rationing emerge. O The future supply of rental housing units increases. O Efficient use of housing space results. O Landlords earn lower profits from renting housing units, but the rent charged has no effect on either the quanbity or quality of rental units.

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Question 21
3. Effects of rent control Rent controls require that landlords set apartment prices below the equilibrium price level. An immediate effect is an apartment rental shortage (excess demand for apartments), because at the regulated price the quantity of apartments demanded is greater than the quantity supplied. When landlords are prevented by cities from charging market rents, which of the following listed outcomes are common in the long run? Check all that apply. The quantity of available rental housing units falls. Landlords earn lower profits from renting housing units, but the rent charged has no effect on either the quantity or quality of rental units. Nonprice methods of rationing emerge. Efficient use of housing space results.
3. The demand and supply curves of pens in the city of Nairobi are represented by the following function:- Required: Quantity demanded Qd=20-4p Quantity supplied Qs = -10 + 6p Where p is the price per pen. Calculate the equilibrium price and quantity. Examine the effect of a price ceiling set by the authorities at ii. Shs.2.00/= per pen.
Price $20- 18- 16- 14 12 10 8 6- 4 2- 0 10 20 30 40 50 90 100 Quantity Refer to the Figure 4-3. If the price in this market is currently $14, what would happen? O a. There would be a shortage of 20 units so producers would increase production. O b. There would be a surplus of 20 units and the price would tend to fall. O c. There would be a shortage of 40 units so producers would increase production. O d. There would be a surplus of 40 units and the price would tend to fall.
Figure 7-4 Price P₂ P₁ o с D 9₂ B E 82 Quantity Refer to Figure 7-4. What will NOT occur when the price falls from P2 to P1? a. The total quantity sold in the market increases. b. The sellers who still sell the good are worse off because they now receive less. OC. The total cost of what is now sold by sellers is actually higher. X d. Producer surplus would fall by area A + B.
3.
11. If suppliers could only provide 5 units, what would the price be? $8 Supply $6- $4 Demand $2- 0 5 10 15 20 25 30 35 Quantity $8 O $5 O $10 O $2 O O Price
demand characterizes the demand for goods and services produced by individual companies in an demand characterizes the demand for goods and services produced by all firms in industry; while that industry. O Increasing; decreasing Price elastic; price inelastic Price sensitive; price insensitive Price inelastic; price elastic O Price insensitive; price sensitive.
3. Effects of rent control Rent controls force landlords to price apartments below the equilibrium price level. An immediate effect is a shortage (excess demand) of apartments, because the quantity of apartments demanded is greater than the quantity supplied at the regulated price. When cities prevent landlords from charging market rents, which of the following are common long-run outcomes? Check all that apply. O Efficient use of housing space results. O The quantity of available rental housing units falls. O The quality of rental housing units falls. O Landlords earn lower profits from renting housing units, but the rent charged has no effect on either the quantity or quality of rental units.
1. Jeff Jones at Ice ‘n Carry ('InC') Coolers reduced the price of InC coolers by $10 from the usual $40. Weekly sales increased from 10 to 20 InC Coolers per week. a. What is the arc price elasticity of demand? b. Jeff is considering a further price reduction. What would be the effect of the reduction on revenues? How about profits? Revenues: Profits: Increase/ Decrease / Can't tell Increase/ Decrease / Can't tell
Label axis and curves. Determine if the situation is a Demand or a Supply and specify which non-price determinants is involved. Illustrate on the graphs: o the new curve, the surplus OR shortage created the new Price at the new E 4. Answer the following scenarios for each of the next Non-Price questions 1 b) The minimum wage in Canada increased to 20$/h. Market of cheap noodles X
Note:- Do not provide handwritten solution. Maintain accuracy and quality in your answer. Take care of plagiarism. Answer completely. You will get up vote for sure.