Suppose that the demand and supply schedules for rental apartments in the city of Gotham are as given in the table below. Monthly Rent Apartments Demanded Apartments Supplied $ 3,250 12,500 17,500 2,750 15,000 15,000 2,250 17,500 12,500 1,750 20,000 10,000 1,250 22,500 7,500 Instructions: Enter your answers as whole numbers. a. What is the market equilibrium rental price per month and the market equilibrium number of apartments demanded and supplied? per month. Market equilibrium rental price is $ Market equilibrium quantity is apartments. b. If the local government can enforce a rent-control law that sets the maximum monthly rent at $2,250, will there be a surplus or a shortage? Shortage Of how many units? apartments per month. How many units will actually be rented each month? apartments. c. Suppose that a new government is elected that wants to keep out the poor. It declares that the minimum rent that can be charged is $3,250 per month. If the government can enforce that price floor, will there be a surplus or a shortage? Surplus Of how many units? apartments per month. How many units will actually be rented each month? apartments.

Suppose that the demand and supply schedules for rental apartments in the city of Gotham are as given in the table below. Monthly Rent Apartments Demanded Apartments Supplied $ 3,250 12,500 17,500 2,750 15,000 15,000 2,250 17,500 12,500 1,750 20,000 10,000 1,250 22,500 7,500 Instructions: Enter your answers as whole numbers. a. What is the market equilibrium rental price per month and the market equilibrium number of apartments demanded and supplied? per month. Market equilibrium rental price is $ Market equilibrium quantity is apartments. b. If the local government can enforce a rent-control law that sets the maximum monthly rent at $2,250, will there be a surplus or a shortage? Shortage Of how many units? apartments per month. How many units will actually be rented each month? apartments. c. Suppose that a new government is elected that wants to keep out the poor. It declares that the minimum rent that can be charged is $3,250 per month. If the government can enforce that price floor, will there be a surplus or a shortage? Surplus Of how many units? apartments per month. How many units will actually be rented each month? apartments.

Microeconomics: Private and Public Choice (MindTap Course List)

16th Edition

ISBN:9781305506893

Author:James D. Gwartney, Richard L. Stroup, Russell S. Sobel, David A. Macpherson

Publisher:James D. Gwartney, Richard L. Stroup, Russell S. Sobel, David A. Macpherson

Chapter10: Price-searcher Markets With Low Entry Barriers

Section: Chapter Questions

Problem 3CQ

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Show transcribed image text Honda Motor Company is considering offering a $2,000 rebate on its minivan, lowering the vehicle's price from $30,100 to $28,100. The marketing group estimates that this rebate will increase sales over the next year from 42,000 to 54,400 vehicles. Suppose Honda's profit margin with the rebate is $5,260 per vehicle. If the change in sales is the only consequence of this decision, what are its costs and benefits? Is it a good idea? Hint: View this question in terms of incremental profits. The cost of the rebate will be $ ____ million. (Round to one decimal place.) The benefit of the rebate will be $ _____ million. (Round to one decimal place.) Is it a good idea? does or does not Offering the rebate ____ look attractive.
* My Account x VHL Central x * VHL | VISTA X Launch Mee x O Your Shoppi x O Settings - AX ! Downloads x B Blackboard X D Announcem X A ezto.mheducation.com/ext/map/index.html?_con=con&external_browser=0&launchUrl=https%253A%252F%252Fnewconnect.mheducation.com%252F#/activity/g -> -> E Apps G Gmail O YouTube O Maps Assignment: Chap 7 6 Saved Help Save The annual output and prices of a three-good economy are shown in the table below. Quantity of Goods Year 1 Quantity of Goods Year 2 10 Good Price Year 1 Price Year 2 points Quarts of ice cream Bottles of shampoo Jars of peanut butter $4.00 3 $3.00 $2.00 $4.00 $3.00 $2.00 1 2 3 eBook Instructions: Enter your answers as a whole number. Print a. What was the economy's nominal GDP in year 1? References b. What was its nominal GDP in year 2? $1 %24 Mc Graw Hill DD 888 $11 esc F5 F6 F7 FR F9 F10 F1 F2 F3 F4 @ 23 $ & 2 4 6. 7 8 9
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