The figure to the right shows the market for one-bedroom apartments in Calgary. If thismarket is initially unregulated, thousand units will rent for a price of $ per month.Suppose however, the city imposes the controlled price shown in the figure. In this case,in the short run, the market experiences an excessof thousand units.In the long run, if the controlled price remains in place, the market will show aof thousand units.This analysis indicates that as time passes, rent controls will cause housing shortages toRental Price ($ per month)905610Rental Housing MarketSshort runSlong runControlled Price2450 60Quantity of Rental Units (Thousands)

The objective of the question is to understand the impact of rent control on the market for…

Answered: The figure to the right shows the…

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Sara buys fresh salmon for $5 per pound from Pike Place Market on Saturday morning and sells them for $12 per pound at a local fish market. Any salmon not sold that day needs to be disposed of properly. The disposal cost is $1 per pound. Kelly believes that demand for salmon is uniformly distributed between 120 to 190 pounds. How many pounds of salmon should she order each day? a) What is the cost of underestimating demand for salmon? $ (round your response to two decimal places) b) What is the cost of overestimating demand for salmon? $ (round your response to two decimal places (round your response to the nearest whole number) How many pounds should she order on Saturday morning?
(1)Find q, ∂q/∂Y and ∂q/∂p, when the price that the firm sets is $30.00, and the average disposable income in the market is $3,000.00. (2)Find the price-elasticity of demand for the firm's good at the point in part (1).Use your answer to (2) to estimate the percentage change in demand if the firm raises the price for their good to $31.00 (and average income in the market stays fixed).
The chief medical officer has advised the government that consumption of widger-corn improves the survival rate of COVID-19 patients by 20%. Suppose the supply and demand functions for widget-corn are: Quantity demanded=100-5P Quantity Supplies= 5P Having confirmed the positive impact of widget-corn consumption on COVID-19 patients, the government has ordered sellers to charge $5 per kilogram. i. What type of price regulation policy is this? ii. Explain the impact of policy on consumer surplus, producer surplus and total economic surplus when iii. Is the outcome of the government's policy efficient?
There are many possible ways to limit the number of cabs in a city. The most common method is an explicit quota using a medallion that is kept forever and can be resold. One alternative is to charge a high license fee each year, which is equivalent to the city’s issuing a medallion or license that lasts only a year. A third option is to charge a daily tax on taxicabs. Using figures, compare and contrast the equilibrium under each of these approaches. Discuss who wins and who loses from each plan, considering consumers, drivers, the city, and (if relevant) medallion owners.
The demand for haddock has been estimated as: log(Q)=a+b log(P)+c log(I)+d log(Pm)log⁡�=�+b log⁡�+c log⁡�+d log⁡�� where Q� = quantity of haddock sold in New England P� = price per pound of haddock I� = a measure of personal income in the New England region Pm�� = an index of the price of meat Suppose b=−1.559�=−1.559, c=0.567�=0.567, and d=1.909�=1.909. What is the price elasticity of demand? -1.559 0.567 1.909 -2.750 What is the income elasticity of demand? 0.567 0.297 1.909 -1.559 What is the cross price elasticity of demand? -1.559 1.909 3.367 0.567 According to the estimated model, the demand for haddock is with respect to price. Suppose disposable income is expected to increase by 5 percent next year. Assuming all other factors remain constant, the quantity of haddock demanded next year will by percent.
Paper cups are popular items for schools and are produced in the market. There are equations for the Supply and Inverse Demand of paper cups that model its Supply and Demand graph. These equations are (for supply), P = 2 + 3Qs, and (for Inverse Demand), P = 12 - 2Qd. Likewise, paper cups are inexpensive and not very helpful for companies trying to achieve high profits. As a result, the government placed a price support of $9. (Part I) Draw the market equilibrium with the government intervention (Q**, P**) of the price ceiling. Please label the graph for slopes, equilibrium points, price support, etc. (Part II) What is the market equilibrium with the intervention of the government (Q**, P**)? (Part III) What is the government surplus (GS**)? (Part IV) What is the Dead Weight Loss (DWL**)?
Rent controls force landlords to price apartments below the equilibrium price level. An immediate effect is a shortage (excess demand) of apartments, because the quantity of apartments demanded is greater than the quantity supplied at the regulated price. When cities prevent landlords from charging market rents, which of the following are common long-run outcomes? Check all that apply. The future supply of rental housing units increases. Efficient use of housing space results. Nonprice methods of rationing emerge. The quantity of available rental housing units falls. Note:- Please avoid using ChatGPT and refrain from providing handwritten solutions; otherwise, I will definitely give a downvote. Also, be mindful of plagiarism. Answer completely and accurate answer. Rest assured, you will receive an upvote if the answer is accurate.
Theory and Evidence. Childcare is a sector that is heavily regulated because of the importance of ensuring child safety. The current price of childcare is $1200 a month. The government is concerned with this market: Evidence shows that young parents are not returning to work because they cannot afford childcare. The government conducts a randomized control trial of a new policy. In some randomly selected cities, the government mandates that childcare providers cannot charge more than $800 per month. Other randomly selected cities are left unaffected to serve as a control. In six months, the outcomes show that the number of children getting childcare has not changed, but that waiting lists for childcare have increased dramatically. (a) Can this outcome be reconciled with the theory of supply and demand? (b) Do you expect that outcomes will improve in the long run?
After reviewing Institute for Clinical and Economic Review consider the following: In the UK, very few drugs or procedures are approved if they cost more than $50,000 per QALY. Take the example of PCSK9 inhibitors. The PCSK9 inhibitors(PSK9i) are a class of injectable drugs approved in 2015 that have been shown to dramatically lower LDL cholesterol levels, by up to 60% when combined with a statin. The market price of the first PCSK9s to be sold in the US in 2015 was $14,350 per year. The ICER analysis shows how many more patients could be treated at a lower total budget impact if the price could be lowered. Given this information what price should Medicare pay for a PSCK9? Should a state Medicaid program pay more or less? Should Medicaid programs in low-income states pay more, less, or the same, compared to high-income states? Should there be one $/QALY for an entire country? How would you expect drug companies to react to price limits set by public programs?
For each of the following scenarios, begin by assuming that all demand factors are set to their original values and that Triple Sevens is charging $200 per room per night. If average household income increases by 20%, from $50,000 to $60,000 per year, the quantity of rooms demanded at the Triple Sevensrises from rooms per night to rooms per night. Therefore, the income elasticity of demand is , meaning that hotel rooms at the Triple Sevens are .
Suppose the government is considering an increase in the toll on a certain stretch of highway from $.20 to $.40. At present, 80,000 cars per week use that highway stretch; after the toll is imposed, it is projected that only 75,000 cars per week will use the highway stretch. Assuming that the marginal cost of highway use is constant (i.e., the supply schedule is horizontal) and equal to $.20 per car, what is the change in social surplus attributable to the increase in the toll? (Hint: The toll increase will cause the supply schedule, not the demand schedule, to shift.) Calculate government revenues from the increased toll. A. $18,750 B. $37,500 C. $15,000 D. $1000

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