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landlords show up at the next council meeting and demand an increase in rents.the council members vote to repeal the price ceiling and instead replace it with a price floor that is RM 50 above the equilibrium price. what is the new market price? how many two-bedroom apartments will be rented?

landlords show up at the next council meeting and demand an increase in rents.the council members vote to repeal the price ceiling and instead replace it with a price floor that is RM 50 above the equilibrium price. what is the new market price? how many two-bedroom apartments will be rented?

ENGR.ECONOMIC ANALYSIS
ENGR.ECONOMIC ANALYSIS
14th Edition
ISBN:9780190931919
Author:NEWNAN
Publisher:NEWNAN
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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landlords show up at the next council meeting and demand an increase in rents.the council members vote to repeal the price ceiling and instead replace it with a price floor that is RM 50 above the equilibrium price. what is the new market price? how many two-bedroom apartments will be rented?

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Q1. Lovers of classical music persuade the Ministry of Cultural, Arts and Tourism to impose a price ceiling of RM40 per concert ticket. As the result of this policy, do more or fewer people attend classical music concerts? Q3. A recent study found that the demand and supply schedules for two-bedroom apartments in Sungai Dua near University Sains Malaysia are as follows: Price (Rent Per Month) Quantity Demanded Quantity Supplied RM400 400 Apartments 100 Apartments 450 375 150 500 350 200 550 325 250 600 300 300 650 275 350 a. What is the equilibrium price and quantity of two-bedroom apartments in Sungai Dua? b. The Penang City Council receives a petition from students complaining about the high rents. As a result, the Council creates a price ceiling that is RM100 below the equilibrium price. What is the new market price? How many two-bedroom apartments will be rented? c. Landlords show up at the next Council meeting and demand an increase in rents. The Council members (concerned about their upcoming re-election campaigns) vote to repeal the price ceiling and instead replace it with a price floor that is RM50 above the equilibrium price. What is the new market price? How many two-bedroom apartments will be rented? Q4. Suppose that the federal government requires producers to pay a RM0.50 tax on each liter of petrol sold. a. Draw a supply-and-demand diagram of the market for petrol before the tax. Show the price paid by consumers, the price received by producers, and the quantity of petrol sold. What is the difference between the price paid by the consumers and the price received by the producers? b. Now draw the supply-and-demand diagram for the petrol market with the tax, Show the price paid by consumers, the price received by producers and the quantity of petrol. What is the difference between the price paid by buyers and the price received by sellers? Has the quantity of petrol sold increased or decreased?
Transcribed Image Text:Q1. Lovers of classical music persuade the Ministry of Cultural, Arts and Tourism to impose a price ceiling of RM40 per concert ticket. As the result of this policy, do more or fewer people attend classical music concerts? Q3. A recent study found that the demand and supply schedules for two-bedroom apartments in Sungai Dua near University Sains Malaysia are as follows: Price (Rent Per Month) Quantity Demanded Quantity Supplied RM400 400 Apartments 100 Apartments 450 375 150 500 350 200 550 325 250 600 300 300 650 275 350 a. What is the equilibrium price and quantity of two-bedroom apartments in Sungai Dua? b. The Penang City Council receives a petition from students complaining about the high rents. As a result, the Council creates a price ceiling that is RM100 below the equilibrium price. What is the new market price? How many two-bedroom apartments will be rented? c. Landlords show up at the next Council meeting and demand an increase in rents. The Council members (concerned about their upcoming re-election campaigns) vote to repeal the price ceiling and instead replace it with a price floor that is RM50 above the equilibrium price. What is the new market price? How many two-bedroom apartments will be rented? Q4. Suppose that the federal government requires producers to pay a RM0.50 tax on each liter of petrol sold. a. Draw a supply-and-demand diagram of the market for petrol before the tax. Show the price paid by consumers, the price received by producers, and the quantity of petrol sold. What is the difference between the price paid by the consumers and the price received by the producers? b. Now draw the supply-and-demand diagram for the petrol market with the tax, Show the price paid by consumers, the price received by producers and the quantity of petrol. What is the difference between the price paid by buyers and the price received by sellers? Has the quantity of petrol sold increased or decreased?
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