Economists in general agree that rent controls are: Question 1 options: an efficient and equitable way to help low-income families. an inefficient but sometimes effective way to help low-income families. an efficient method of dealing with the shortages caused by price ceilings. the only way to solve the problem of poverty.

Economists in general agree that rent controls are: Question 1 options: an efficient and equitable way to help low-income families. an inefficient but sometimes effective way to help low-income families. an efficient method of dealing with the shortages caused by price ceilings. the only way to solve the problem of poverty.

Economics (MindTap Course List)

13th Edition

ISBN:9781337617383

Author:Roger A. Arnold

Publisher:Roger A. Arnold

Chapter4: Prices: Free, Controlled, And Relative

Section: Chapter Questions

Problem 5QP

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Price Quantity Demanded Quantity Supplied $10 100 0 $12 80 20 $14 60 40 $16 40 60 $18 20 80 $20 0 100 What will happen to the market condition (at the government price of $18) if the income is reduced significantly. (Show the work on the graph)
Will the price ceiling decrease the financial burden and poverty rate?
Government farm programs are very controversial since they are designed to assist only the farmers. But many analysts claim that farm programs are examples of binding price floor and serve only few. According to these analysts, these programs costs trillions of dollars and make households bear higher prices at the groceries and high taxes to finance the surplus caused the farm price controls. Therefore, they cause a deadweight loss to society. Do you think that the government should end the farm subsidy programs? Identify the pros and cons of your propositions. Also, consider the political, social and economic aspects of the issue.
Interventions in agricultural markets. (20 pts) Use a supply and demand diagram to illustrate the market for corn in the short-run (less than one harvest season with a perfectly inelastic supply curve) with a price support in place. Label all prices and quantities. (Do not do a welfare table.) (10 pts) Explain clearly the main differences between a price support and a price floor. (10 pts)
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QUESTION 5 Which group of individuals most likely benefits from rent controls? single parent families without savings or other financial assets who fail to obtain rental housing low-income wage earners who fail to obtain rental housing upper-income professionals who rent apartments at the price ceiling rate the unemployed who fail to obtain rental housing
What is correct about rent controls? Question 4 options: They cause excess supply (or surplus) at the controlled price, which is lower than equilibrium price. They cause excess demand (or shortage) at the controlled price, which is lower than equilibrium price. They can guarantee everyone will have an affordable apartment They encourage apartment owners to invest in maintenance of the apartment The consumer's income goes up. The good in question is a normal good. What can we expect? (hint - I discuss this in the video lecture) Question 7 options: The demand curve moves to the left. The price of the good decreases. The demand curve moves to the left. The price of the good increases. The demand curve moves to the right. The price of the good decreases. The demand curve moves to the right. The price of the good increases. What is an inferior good? Hint - use the economic definition, not a general dictionary definition! Question 10 options: A good for which demand does not…
instructure.com/courses/11047/quizzes/121411/take The following graph depicts a market where a tax has been imposed. Pe was the equilibrium price before the tax was imposed, and Qe was the equilibrium quantity. After the tax, Pc is the price that consumers pay, and Ps is the price that producers receive. Qr units are sold after the tax is imposed. NOTE: The areas B and C are rectangles that are divided by the supply curve ST. Include both sections of those rectangles when choosing your answers. nº P₁ " A A B M C Q₁ Which areas represent consumer surplus before the tax is imposed? C+G+E B-C Q₂
The equilibrium price in the housing market is very high. What do you think will happen if the government imposes a very high price ceiling that is below but very close to the equilibrium price on the housing market, because a politician owns housing units in certain areas? How does that affect the poor and the market for housing?
An example of an effective price ceiling would be government setting the price of pencils at dollars. An example of an effective price floor would be the government setting the price of pencils at dollars.
Using a supply-demand diagram, determine the changes in consumer surplus (CS) and producer surplus (PS) when a price ceiling is imposed. That is, show the change in the areas of CS and PS from when there was no government intervention to when the price control is imposed.
18. The demand and supply of bowling balls is given by Qd = 20 – P and Qs = -10 + 4P. The government now recognizes that bowling causes people to become more attractive and live longer and decides to issue a subsidy of b = $2 to producers for each bowling ball that is sold. A. What is the market price, PBS, before the subsidy program is imposed? B. What is the market price, PAS, after the subsidy program is imposed? C. What is the final price, PG, producers receive per ball after they receive the subsidy?