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- A price ceiling is only effective if it is above the market equilibrium. True FalseQuestion 12.12. A surplus of a product will arise when price is above equilibrium with the result that quantity demanded exceeds quantity supplied. above equilibrium with the result that quantity supplied exceeds quantity demanded. below equilibrium with the result that quantity demanded exceeds quantity supplied. below equilibrium with the result that quantity supplied exceeds quantity demanded. Question 13.13. Which of the following is a consequence of rent controls established to keep housing affordable for the poor? Less rental housing is available as prospective landlords find it unprofitable to rent at restricted prices. The quality of rental housing declines as landlords lack the funds and incentive to maintain properties. Apartment buildings are torn down in favor of office buildings, shopping malls, and other buildings where rents are not controlled. All of the above are consequences of rent controls. Question 14.14. A headline…The following graph shows the labor market in the fast-food industry in the fictional town of Supersize City. Use the graph input tool to help you answer the following questions. You will not be graded on any changes you make to this graph. Note: Once you enter a value in a white field, the graph and any corresponding amounts in each grey field will change accordingly. WAGE (Dollars per hour) 20 18 16 14 12 2 0 0 1 Supply Demand 90 180 270 360 450 540 630 720 810 900 LABOR (Thousands of workers) In this market, the equilibrium hourly wage is $ Graph Input Tool Market for Labor in the Fast Food Industry Wage (Dollars per hour) Labor Demanded (Thousands of workers) 6 900 and the equilibrium quantity of labor is Labor Supplied (Thousands of workers) ? 378 thousand workers.
- Consider a market given by the following supply and demand equations MC=1+5Q WTP=97-3Q If the government were to impose a price floor resulting in a quantity exchanged of 4, calculate the price at which the price floor is set. round your unitless answer to two decimal placesNo Plagirism Please! Price controls on rents are frequently implemented by governments in an effort to protect renters from high housing prices. Differentiate the type of price control used from other potential price controls, and then formulate reasons as to why governments should be careful when implementing these types of controlsIf a city government were to impose a ceiling price on rental prices in the downtown area: quantity supplied would increase. supply would increase. an illegal market would likely emerge. quantity demanded would decrease.
- Select the area(s) that represent CONSUMER SURPLUS before the price floor is imposed? (select all that apply)Some cities impose rent control laws, which are price controls or limits on the price of rental accommodations (apartments, houses, and mobile homes). New York City alone had over two million rent-controlled apartments in the early 1950s, but only about 27,000 as of 2014. Show the effect of a rent control law on the equilibrium rental price and the quantity of N.Y. apartments. Show the amount of excess demand on your supply-and-demand diagram. Consider the market rental dwellings in New York illustrated in the figure to the right. Suppose the maximum rent with New York's laws is p. 1.) Using the point drawing tool, indicate the quantity of rental dwellings demanded and the market rent with the rent control laws. Label this point 'ed.' 2.) Using the point drawing tool, indicate the quantity of rental dwellings supplied and the market rent with the rent control laws. Label this point 'es.' Carefully follow the instructions above, and only draw the required objects. P, rent Q Q, quantity…Graph Input Tool (? Market for Labor in the Fast Food Industry 20 I Wage (Dollars per hour) 18 6. 16 Labor Demanded (Thousands of workers) Labor Supplied (Thousands of workers) Supply 232 14 12 10 Demand 4 40 80 120 160 200 240 280 320 360 400 LABOR (Thousands of workers) WAGE (Dollars per hour)
- Suppose that the government establishes a price ceiling of $3.70 for wheat. What might prompt the government to establish this price ceiling?How are rent controls likely to affect the market for housing in a city? Create a graph illustrating the market for apartments without rent controls to help with your answer. What does it mean, in terms of this market for the rent control to be effective? Would you recommend such a policy?Assess the effects of Price ceiling (Hint: Government policies and intervention) please provide detailed answer