Consider the folloing excerpt from a November 6, 2019 news article published by koreabirwire com about asituation in South Korea South Korea on Wednesday adopted a scheme to cap presala prices of privately bult apartments in its extended efforts to stablize real estate markets "Demand for new homes in (the capital city of) Seoul has risen sharply due to record-low rates and ample liquidity in the markets Presale prices of newly built apartments jumped four times higher than those of existing homes Land Minister Kim Hyun-mee said in a housing policy review committee meeting held at Sejong City, an administrative hub 130 kilometers southeast of Seoul In July, the minialer sald k was the right time to reintroduce the price celling regulation on newly launched fats in the private sector, ching that presale prices of apartnents in Seoul had jumped to more than twice those of existing apartment prices builder scramble to demolish aged apartments on hopes for hefty galns aher rebuldng Construction companies have been opposed to setting limits on sale prices and disclosing construction costs They have argued that such measures would end up squeezing home supply Ha uma out to be true that this price celing does "end up squeezing home supply" then this price celling is (Hint draw a graph) OA binding OB set ata price equal to the market equlibrium price. OC een binding OD set at a price above the market equilbtum price
Consider the folloing excerpt from a November 6, 2019 news article published by koreabirwire com about asituation in South Korea South Korea on Wednesday adopted a scheme to cap presala prices of privately bult apartments in its extended efforts to stablize real estate markets "Demand for new homes in (the capital city of) Seoul has risen sharply due to record-low rates and ample liquidity in the markets Presale prices of newly built apartments jumped four times higher than those of existing homes Land Minister Kim Hyun-mee said in a housing policy review committee meeting held at Sejong City, an administrative hub 130 kilometers southeast of Seoul In July, the minialer sald k was the right time to reintroduce the price celling regulation on newly launched fats in the private sector, ching that presale prices of apartnents in Seoul had jumped to more than twice those of existing apartment prices builder scramble to demolish aged apartments on hopes for hefty galns aher rebuldng Construction companies have been opposed to setting limits on sale prices and disclosing construction costs They have argued that such measures would end up squeezing home supply Ha uma out to be true that this price celing does "end up squeezing home supply" then this price celling is (Hint draw a graph) OA binding OB set ata price equal to the market equlibrium price. OC een binding OD set at a price above the market equilbtum price
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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Transcribed Image Text:Consider the folloing excerpt from a November 6, 2019 news article published by koreabirwire com about asituation in South Korea
South Korea on Wednesday adopted a scheme to cap presala prices of privately bult apartments in its extended efforts to stablize real estate markets
"Demand for new homes in (the capital city of) Seoul has risen sharply due to record-low rates and ample liquidity in the markets Presale prices of newly built apartments jumped four times higher than those
of existing homes Land Minister Kim Hyun-mee said in a housing policy review committee meeting held at Sejong City, an administrative hub 130 kilometers southeast of Seoul
In July, the minialer sald k was the right time to reintroduce the price celling regulation on newly launched fats in the private sector, ching that presale prices of apartnents in Seoul had jumped to more than
twice those of existing apartment prices
builder scramble to demolish aged apartments on hopes for hefty galns aher rebuldng
Construction companies have been opposed to setting limits on sale prices and disclosing construction costs They have argued that such measures would end up squeezing home supply
Ha uma out to be true that this price celing does "end up squeezing home supply" then this price celling is
(Hint draw a graph)
OA binding
OB set ata price equal to the market equlibrium price.
OC een binding
OD set at a price above the market equilbtum price
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