In Winnipeg the vacancy rate (the percent of apartments that are available to rent) is very low, especially for apartments with lower rents. In fact, there are far more people looking for apartments than there are apartments to rent. This shortage of apartments means that people are having a very difficult time finding apartments to rent, especially those with low incomes. Some groups in Winnipeg are calling for the provincial government to start building apartment buildings. Use supply and demand curves to explain why a free market economist might argue that government intervention in the market for apartment rentals is unnecessary. What market failure might they be overlooking with that claim?
In Winnipeg the vacancy rate (the percent of apartments that are available to rent) is very low, especially for apartments with lower rents. In fact, there are far more people looking for apartments than there are apartments to rent. This shortage of apartments means that people are having a very difficult time finding apartments to rent, especially those with low incomes. Some groups in Winnipeg are calling for the provincial government to start building apartment buildings. Use supply and demand curves to explain why a free market economist might argue that government intervention in the market for apartment rentals is unnecessary. What market failure might they be overlooking with that claim?
Chapter3: Market Demand And Supply
Section: Chapter Questions
Problem 7SQP
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In Winnipeg the vacancy rate (the percent of apartments that are available to rent) is very low, especially for apartments with lower rents. In fact, there are far more people looking for apartments than there are apartments to rent. This shortage of apartments means that people are having a very difficult time finding apartments to rent, especially those with low incomes. Some groups in Winnipeg are calling for the provincial government to start building apartment buildings. Use
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