As you can see from the article in the prior problem, "Rents Hit All-Time Highs amid Job Growth and Low Vacancy Rates," some peoplemove out as a result of rent increases, while others are ready to pay an even higher rent. Rent control adds yet another aspect bysetting a ceiling on what the rental price can ultimately rise to. The supply and demand model can be used to illustrate the mechanismthat leads to all these different market outcomes.Consider the market for rental properties in Los Angeles and Orange counties in Southern California. Suppose that while averageearnings increased by about 10% in Los Angeles and Orange counties, the average rent has increased by 20%. (Assume for a momentthat there are no rent control regulations.)Adjust the following graph to illustrate the rent increase by either using the black point (cross symbol) or by shifting the supply and demaraHint: Determine whether this scenario leads to a shift in the demand/supply curve or a movement along the demand/supply curve.(?)The Market for Rental Properties in Los Angeles and Orange CountiesRENTAL PRICE (Dollars per month)200018001000140012001000800600400200100100SupplyDemand800 900 1000000 700500400200 300QUANTITY (Number of vacant units)ODemandCSupply+New RentVacancies Demanded with Price ControlDVacancies Supplied with Price ControlD RENTAL PRICE (Dotars)100050000040020000Demand100 200 300 400 500 600 700 800 900 1000QUANTITY (Number of vacant units)܀As a result of the 20% rent increase, the number of vacant units demandedThe increase in earnings results in a new equilibrium rent of 5units.New Rent*Vacancies Demanded with Price ControlVacancies Supplied with Price ControltoAdjust the previous graph to show the effect of the increase in earnings.Hint: Determine whether this scenario leads to a shift in the demand/supply curve or a movement along the demand/supply curve.units.per month and a new equilibrium number of vacancies ofNow suppose that the state of California Introduces rent control by setting the maximum rent at $1,200 per month.On the previous graph, use the grey point (star symbol) to indicate the number of vacances demanded. Then use the tan point (dash symbol) toindicate the number of vacancies supplied.As a result of rent control, there is avacant units in the market.Grade It NowSave & ContinueContinue without saving

Average increase in earnings in LA and Orange counties: 10%Average increase in rent in LA and Orange…

RENTAL PRICE (Dota 1000 100 600 400 200 D Demand O 100 200 300 400 500 600 700 800 900 1000 QUANTITY (Number of vacant units) As a result of the 20% rent increase, the number of vacant units demanded The increase in earnings results in a new equilibrium rent of 5 units. New Rent * Vacancies Demanded with Price Control Vacancies Supplied with Price Control As a result of rent control, there is a to Adjust the previous graph to show the effect of the increase in earnings. Hint: Determine whether this scenario leads to a shift in the demand/supply curve or a movement along the demand/supply curve. per month and a new equilibrium number of vacancies of units. Now suppose that the state of California introduces rent control by setting the maximum rent at $1,200 per month. On the previous graph, use the grey point (star symbol) to indicate the number of vacances demanded. Then use the tan point (dash sym indicate the number of vacancies supplied. vacant units in the market.

RENTAL PRICE (Dota 1000 100 600 400 200 D Demand O 100 200 300 400 500 600 700 800 900 1000 QUANTITY (Number of vacant units) As a result of the 20% rent increase, the number of vacant units demanded The increase in earnings results in a new equilibrium rent of 5 units. New Rent * Vacancies Demanded with Price Control Vacancies Supplied with Price Control As a result of rent control, there is a to Adjust the previous graph to show the effect of the increase in earnings. Hint: Determine whether this scenario leads to a shift in the demand/supply curve or a movement along the demand/supply curve. per month and a new equilibrium number of vacancies of units. Now suppose that the state of California introduces rent control by setting the maximum rent at $1,200 per month. On the previous graph, use the grey point (star symbol) to indicate the number of vacances demanded. Then use the tan point (dash sym indicate the number of vacancies supplied. vacant units in the market.

Microeconomics A Contemporary Intro

10th Edition

ISBN:9781285635101

Author:MCEACHERN

Publisher:MCEACHERN

Chapter5: Elasticity Of Demand And Supply

Section: Chapter Questions

Problem 14PAE

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7 Graphically illustrate and explain the concept of location rent.
The demand and supply schedules in this table list the quantity supplied and quantity demanded of steelworkers at different salaries. Provide your answer below: Annual Salary ($) 60000 40000 20000 Annual Salary $40,000 $45,000 $50,000 $55,000 $60,000 огсгт The highest and lowest points on the supply and demand curves have been plotted for you and are stationary. Using the demand and supply schedule provided above, move the other points on the graph to their correct coordinates to discover the equilibrium point where the demand curve of those employers who want to hire steelworkers intersects with the supply curve of those who are qualified and willing to work as steelworkers. 0 Demand and Supply of Steelworkers Quantity Demanded Demand 20, 000 15, 000 10, 000 (4000, 37-000) 5,000 0 (13000, 58000) (18000, 66000) Supply (11000, 50000) (6000, 27000) (13000, 32000) 20000 Quantity Supplied 10,000 15, 000 20, 000 40000 Quantity of Workers 25,000 30,000
Table 24-5The table below pertains to Wrexington, an economy in which the typical consumer’s basket consists of 20 pounds of meat and 10 toys. Year Price ofMeat Price of aToy 2004 $3 per pound $2 2005 $1 per pound $7 2006 $4 per pound $5 Refer to Table 24-5. The cost of the basket Group of answer choices increased from 2004 to 2005 and increased from 2005 to 2006. increased from 2004 to 2005 and decreased from 2005 to 2006. decreased from 2004 to 2005 and increased from 2005 to 2006. decreased from 2004 to 2005 and decreased from 2005 to 2006.
Case study: Government interventionThe price of raw sugar recently reached its highest level since 1981 due to problems with supply. Historically, rawsugar has traded at between 10 and 12 US cents per pound at the New York Board of Trade. But the price increased toover 18 cents last month.Growing demand in Brazil for sugar to be turned into ethanol for fuel, coupled with a sharp fall in Indian productionhave both been factors in the price increase.Sugar production in India for 2008-09 fell 45% year-on-year due to less rain in the monsoon season damaging anumber of agricultural crops.The London-based International Sugar Organisation predicts that global consumption of sugar is likely to outstripproduction by 9m tonnes next year, forcing food companies and governments to dig into stockpiles. In the US, snackproducers including Mars, Nestlé and Krispy Kreme Doughnuts put pressure on the US government to relax importcontrols, warning that otherwise they might run out of sugar.Commentators…
Case study: Government interventionThe price of raw sugar recently reached its highest level since 1981 due to problems with supply. Historically, rawsugar has traded at between 10 and 12 US cents per pound at the New York Board of Trade. But the price increased toover 18 cents last month.Growing demand in Brazil for sugar to be turned into ethanol for fuel, coupled with a sharp fall in Indian productionhave both been factors in the price increase.Sugar production in India for 2008-09 fell 45% year-on-year due to less rain in the monsoon season damaging anumber of agricultural crops.The London-based International Sugar Organisation predicts that global consumption of sugar is likely to outstripproduction by 9m tonnes next year, forcing food companies and governments to dig into stockpiles. In the US, snackproducers including Mars, Nestlé and Krispy Kreme Doughnuts put pressure on the US government to relax importcontrols, warning that otherwise they might run out of sugar.Commentators…
Case study: Government interventionThe price of raw sugar recently reached its highest level since 1981 due to problems with supply. Historically, rawsugar has traded at between 10 and 12 US cents per pound at the New York Board of Trade. But the price increased toover 18 cents last month.Growing demand in Brazil for sugar to be turned into ethanol for fuel, coupled with a sharp fall in Indian productionhave both been factors in the price increase.Sugar production in India for 2008-09 fell 45% year-on-year due to less rain in the monsoon season damaging anumber of agricultural crops.The London-based International Sugar Organisation predicts that global consumption of sugar is likely to outstripproduction by 9m tonnes next year, forcing food companies and governments to dig into stockpiles. In the US, snackproducers including Mars, Nestlé and Krispy Kreme Doughnuts put pressure on the US government to relax importcontrols, warning that otherwise they might run out of sugar.Commentators…
mwy w grupi i ving withopoinviny universo in un grup nove mi viviys wwww.vg. Graph Input Tool ? Market for Goods 25 Quantity Demanded (Units) Demand Price (Dollars per unit) 25.00 Demand + 0 15 5 45 20 50 QUANTITY (Units) On the graph input tool, change the number found in the Quantity Demanded field to determine the prices that correspond to the production of 0, 10, 20, 25, 30, 40, and 50 units of output. Calculate the total revenue for each of these production levels. Then, on the following graph, use the green points (triangle symbol) to plot the results. 630 567 A 504 Total Revenue 441 378 315 252 189 126 63 PRICE (Dollars per unit) TOTAL REVENUE (Dollars) 50 45 40 35 30 25 20 15 10 5 0 10 25 30 35 40 0 + 0 5 10 45 50 15 20 25 30 35 QUANTITY (Number of units) Calculate the total revenue if the firm produces 10 versus 9 units. Then, calculate the marginal revenue of the 10th unit produced. The marginal revenue of the 10th unit produced is $ Calculate the total revenue if the firm…
The price of crude oil increased to its highest level due to conditions which impactedsupply. Historically, crude oil has traded at between 70 and 150 USD per barrel. But theprice increased to over 200 USD in March 2022. Growing demand in Canada for crude tobe turned into refined petroleum, coupled with a sharp fall in production in Saudi Arabiahave both been factors in the price increase. Bauxite production in Saudi Arabia for 2017-18 fell 65% year-on-year due to an agreement with OPEC. The Energy InformationAdministration predicts that global consumption of crude oil is likely to be greater thanproduction by 20 million barrels this year.In the US, companies in the steel and alumina industry have put pressure on the USgovernment to relax import controls, warning that otherwise they might run out of petrol.Commentators predict that most steel and alumina producers will be unaffected becausecrude is such a small part of their spending.a. Explain, using supply and demand analysis, why…
explain the rise in housing demand
The market demand for productXis given by: \[ Q_{d}=6-1 / 2 P \text { or } P d=12-2 Q \] The market supply for goodXis given by: \[ Q_{s}=-14+2 P \text { or } P s=7+1 / 2 Q \] whereP=price per unit andQis number of units. Draw a supply-and-demand graph with these curves. 1.) Using the line drawing tool, draw the supply and demand curves. Properly label your lines. 2.) Using the point drawing tool, plot the equilibrium point. Label your point 'E'. Note: Carefully follow the instructions above and only draw the required objects. The equilibrium price is$and the equilibrium quantity is unit(s). (Enter your responses as integers.) A per-unit excise tax is imposed on suppliers of productX, and the market supply with the tax is now given by: \[ Q_{s}=-19+2 P \text { or } P s=9.50+1 / 2 Q \] Using the graph on the right, show this supply curve. 1.) Using the line drawing tool, draw the new supply curve. Label your line 'S1+tax'.1. Note: Carefully follow the instructions above and only draw…
Suppose one thousand (1000) units of product Aare produced by XYZ limited and the quantity demade for the product is two thousand (2000)units .All other things remaining constant,$18 change in price of product A results in change quantity demaded and supplied of 6 and 9 respectively.XYZ limited has a work force of 500 people who Pay income tax of $200 each . Calculate the equilibrium price and equilibrium quantity.
PRICE (Dollars per CD) 20 18 16 14 2 0 0 S₂ S₁ 1 2 1 4 5 6 7 QUANTITY (Millions of CDs) 8 9 10 Because you understand the law of supply, you can deduce that the correct graphical representation of the supply for CDs must be you know that at a price of $10 per CD, the is five million CDs. Moreover,