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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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).
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…
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.
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.
What is the relationship between the rent gradient and transportation costs in a homogeneous monocentric city?
Price Ceiling of Low-Cost Homes The Malaysian government has implemented a price ceiling on low-cost homes starting from the year 2010. The implementation of this price ceiling is aimed to ensure that people from the lower income group have one of the necessities, which is shelter. The government has set the price ceiling of low-income houses at RM42,000 in Peninsular Malaysia and RM50,400 in Sabah and Sarawak. Furthermore, in conjunction with the 10th Malaysia plan, the government has planned to develop more houses at an affordable price, involving private developers. The target is to have 161,000 affordable homes, of which private developers would build 83,000 units while the rest would be built by the government.Due to the implementation of this price ceiling, the legal maximum price of low-income houses set by the government is lower than the market equilibrium price. This is done in order to protect the interest of consumers by preventing the producers from charging prices that…
Consider the market for pork illustrated in the graph. Suppose initial demand (D¹) is Q=280-20p and supply (S¹) is Q=85 +40p and that a $2.75 tax is charged to consumers, shifting the demand curve to D². Using the original and after-tax pork demand functions and the supply function, derive the initial equilibrium price and quantity and the after-tax equilibrium price and quantity. (Enter all responses using real numbers rounded to two decimal places) The equilibrium price is initially $ per kg. (...) p, $ per kg P₁ P2 0₂. e₁ D² D¹ Q₂ Q₁ Q, Million kg of pork per year
Example 2: In fall of 2011, the National Christmas Tree Association decided to impose a fee/tax of $0.15 per tree sold.² They claimed the tax revenue raised would fund a new marketing campaign for Christmas tree growers in response to growing plastic tree imports. The proposal quickly drew controversy: some argued that the fee/tax would be passed along in higher prices to consumers, but the National Christmas Tree Association says no. How does the answer to this question depend on the assumption about the price elasticity of demand? a. Consider two graphs of the market for Christmas trees. The supply curve in each market is assumed to be the same. In the left graph, assume the price elasticity of demand is relatively inelastic and in the right graph, assume the price elasticity of demand is relatively elastic. Add labels on your diagram to identify the equilibrium price and quantity of trees before the tax. b. Now, suppose retailers are assessed a tax of amount for each tree sold.…
The estimated monthly sales of Mona Lisa paint-by-number sets is given by the formula q = 95e−3p2 + p, where q is the demand in monthly sales and p is the retail price in hundreds of yen. (a) Determine the price elasticity of demand E when the retail price is set at ¥400. E = _____ Interpret your answer. The demand is going down/up by ____ % per 1% increase in price at that price level. Thus, a large price decrease/increase is advised. (b) At what price will revenue be a maximum? ____ hundred yen (c) Approximately how many paint-by-number sets will be sold per month at the price in part (b)? (Round your answer to the nearest integer.) ______ paint-by-number sets per month
In an unregulated, competitive market we could calculate consumer surplus if we knew the equations representing supply and demand. For this problem assume that supply and demand are as follows: Supply P = 4 + 0.116Q Demand P = 25 - 0.10Q where P represents unit price in dollars and Q represents the number of units sold each year. Calculate the annual value of aggregate consumer surplus.
The inverse demand function is p = 10q, where q is the number of units sold. The inverse supply function is defined by p = 2 + q. A tax of $2 is imposed on suppliers for each unit that they sell. After the tax is imposed, the equilibrium quantity with taxes is. 0 1 07 O 3 04 09
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