The NSW government report lists a number of policymeasures under consideration. One of these policiesinvolves a levy on the revenues from bookings of short-term rental accommodation. This would be similar tothe state of Victoria which announced in September2023 the introduction of a 7.5% levy on short-termrental accommodation properties from January 2025Links to an external site.. Let's discuss the possibleeffects of such measure on the long-term rentalmarket only. In the figures below, we compare Sydney's(SYD) market under its current policy (no levy) for short-term rental platforms and under the alternativescenario where it implements the same policy asVictoria with a levy on the revenues from bookings ofshort-term rental accommodation. The [Select] figurebest represents the effect of introducing the samepolicy as Victoria. It would cause [Select] in rentalprices and [Select] in rental accommodation.Long-Term Rental MarketLong-Term Rental MarketXXCEYD Vic lay

The Potential Impact of a Short-Term Rental Levy on Sydney's Long-Term Rental MarketThe New South…

Answered: The NSW government report lists a…

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Assume that the South Australian government stops collecting stamp duty on home purchases from buyers. What will be the likely effect on the market for owner-occupied homes in the short run, and in the long term? Be sure to describe your assumptions, and the reasons for them.
Over time, the short-run curves pivot to become long-run curves, and the shortage __grows/shrinks____ to ___________ million cubic feet per month. (see graph below).
what would be the pros and cons of imposing a price ceiling in the United States because of covid-19?
16. As a newly college graduate with a BA degree in Economics, you are being asked to evaluate the following situations involving elasticity: SMC would like to increase its enrollment of international students by 5% in the Fall of 2021; its current per unit price is $250 and that its elasticity of demand is -0.7 To achieve SMC's enrollment target of 5%, you would suggest that it should its tuition per unit by % and that the new per unit price be at $ O raise ; 7.14 ; 232.14 cannot be computed based on information provided lower; 7.14 ; 232.14 lower; 14 ; 215 lower; 7; 238
Online the timing and tailoring of prices to specific products is the key to successful pricing in online markets. And " Thanks to the ready availability of data in online markets, a pricing manager can easily approximate the elasticity of demands for the different products it sells online." Assuming a 10 percent decrease in price increases sales by 30 percent, calculate the price elasticity of demand? If the wholesale price of the online product is $50 and sells at a price comparison site that charges $0.50 per click and boasts a conversation rate of 5 percent ( an average of 20 percent clicks are needed to generate sale), the incremental cost of each sale is $50. What price should you change for the product? What is the markup? B) . The authors assert that price sensitivity is affected by (1) product cycle, and (2) number of competitors. In fact, " When the number of competing sellers doubles, a firm's elasticity of demand is expected to double ( you should be able to verify this…
Question #3. Assume that crop rent gradients for three different crops are a function of crop type and soil fertility. The rent gradient for broccoli is -.02r+3. The rent gradient for spinach is -.005r+2 and the rent gradient for wheat is -.00167r+1. Given a farm with 600 acres, how many acres would be planted with each crop? How would this change if the government decides to subsidize spinach production by $0.50—shifting the curve out by $0.50?
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.
5
Solve the attachment
Hanna Corporation markets a compact microwave oven. In 2010 they sold 23,000 units at $375 each. Per capita disposable income in 2010 was $6,750. Hanna economists have determined that the arc price elasticity for this microwave oven is −1.2. Which the following statement is wrong? 1. A price decrease in 2011 will help company revenue growth 2. If all other things remain equal, sales volume for 2011 are 27,312 if price is reduced to 325. 3. Assume that arc income elasticity for microwave ovens is 2.5 and price and income effects are independent and additive. Given that the price is reduced to $325, and that per capita disposable income increases to $7,000, sales volume for 2011 will be 29,032. 4. A price increase in 2011 will help company revenue growth.
The demand curve for a product is estimated to be Q = 500 -5P + 2P, + 0.11 where P is the price of its product, P, is the price of a rival's product, and I is per capita disposable income. Presently, P $100, P, = $30, and I = $1000 so Q = 160. If so, the current income elasticity of demand is: 4.875 2.625 O 3.125 0.625
What is the relationship between the rent gradient and transportation costs in a homogeneous monocentric city?

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