✓ Details You have already addressed the plight of the renters of Stocktonia in terms of cost-benefit analysis, resources/scarcity, and marginal analysis in QW/RA 1. In this assignment you are going to produce and analyze the supply and demand graphs for the rental market before the rent control and after (please hand draw your graphs, take a picture, upload to you device, and insert into your response of all graphical analysis). I want you to factor in wether the demand or supply curve are more elastic or inelastic in Stocktonia (a place with the geography of Stockton). Talk about the consumer and producer surpluses that exist in your response as well. Part I The situation described below has happened in the fictitious city of Stocktonia. Read the situation. Identify the problem and its solution from an economists perspective. Then list the present, future, intended, and unintended consequences of that solution. Think about the role of cost-benefit analysis, resources/scarcity, and marginal analysis. Situation: People complain that the rent is too damm high (Political Party 2005) and it as become to expensive to live. The Stocktonia City Council enacts a rent control ordinance limiting the maximum amount of rent a landlord may charge for certain properties. Most of the people of Stocktonia can afford the new dirt-cheap rent. Eventually, landlords realize they have no need to maintain the restricted properties-they don't generate any income, and the people living there can't afford to live anywhere else. The landlords completely ignore the restricted properties. They focus all their time and money on nicer, profit-yielding investments. After ten years, the rent-controlled buildings are falling apart. They're unsafe and unsanitary and the only tenants are drug dealers.
✓ Details You have already addressed the plight of the renters of Stocktonia in terms of cost-benefit analysis, resources/scarcity, and marginal analysis in QW/RA 1. In this assignment you are going to produce and analyze the supply and demand graphs for the rental market before the rent control and after (please hand draw your graphs, take a picture, upload to you device, and insert into your response of all graphical analysis). I want you to factor in wether the demand or supply curve are more elastic or inelastic in Stocktonia (a place with the geography of Stockton). Talk about the consumer and producer surpluses that exist in your response as well. Part I The situation described below has happened in the fictitious city of Stocktonia. Read the situation. Identify the problem and its solution from an economists perspective. Then list the present, future, intended, and unintended consequences of that solution. Think about the role of cost-benefit analysis, resources/scarcity, and marginal analysis. Situation: People complain that the rent is too damm high (Political Party 2005) and it as become to expensive to live. The Stocktonia City Council enacts a rent control ordinance limiting the maximum amount of rent a landlord may charge for certain properties. Most of the people of Stocktonia can afford the new dirt-cheap rent. Eventually, landlords realize they have no need to maintain the restricted properties-they don't generate any income, and the people living there can't afford to live anywhere else. The landlords completely ignore the restricted properties. They focus all their time and money on nicer, profit-yielding investments. After ten years, the rent-controlled buildings are falling apart. They're unsafe and unsanitary and the only tenants are drug dealers.
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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Question
Transcribed Image Text:✓ Details
You have already addressed the plight of the renters of Stocktonia in terms of cost-benefit analysis, resources/scarcity, and marginal analysis in
QW/RA 1. In this assignment you are going to produce and analyze the supply and demand graphs for the rental market before the rent control and
after (please hand draw your graphs, take a picture, upload to you device, and insert into your response of all graphical analysis). I want you to factor in
wether the demand or supply curve are more elastic or inelastic in Stocktonia (a place with the geography of Stockton). Talk about the consumer and
producer surpluses that exist in your response as well.
Part I
The situation described below has happened in the fictitious city of Stocktonia.
Read the situation. Identify the problem and its solution from an economists perspective. Then list the present, future, intended, and
unintended consequences of that solution. Think about the role of cost-benefit analysis, resources/scarcity, and marginal analysis.
Situation: People complain that the rent is too damm high (Political Party 2005) and it as become to expensive to live. The Stocktonia City Council
enacts a rent control ordinance limiting the maximum amount of rent a landlord may charge for certain properties. Most of the people of Stocktonia
can afford the new dirt-cheap rent. Eventually, landlords realize they have no need to maintain the restricted properties-they don't
generate any income, and the people living there can't afford to live anywhere else. The landlords completely ignore the restricted
properties. They focus all their time and money on nicer, profit-yielding investments. After ten years, the rent-controlled
buildings are falling apart. They're unsafe and unsanitary and the only tenants are drug dealers.
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