The impact of the price ceiling on the given incidents.

Question

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Answer 1

Question

Chapter 8, Problem 1CYU

a)

To determine

The impact of the price ceiling on the given incidents.

a)

Expert Solution

Explanation of Solution

The given scenarios represent the effect of the price ceiling on the number of parking spaces.

After the price ceiling, homeowners do not have the incentive to give their houses on rent because they are getting rent below the equilibrium rent in the market. Due to lower rent, some house-owners think that it’s not beneficial to rent out spaces. As a result, the number of houses available for rent falls from 4000 units to 3600 units.

Economics Concept Introduction

A price ceiling is a price control method used by the government to set the price of a product or service in the market. Purchasing or selling that product below that price would be a punishable act.

The government usually sets the price controlling method to safeguard the marginal group or a specific group, but these methods result in various types of inefficiencies in the market.

b)

To determine

The impact of the price ceiling on the given incidents.

b)

Expert Solution

Explanation of Solution

Due to the fall in rent demand for parking space increases as some people prefer to take their car as an alternative for carpooling. As a result, the demand for parking space rises from 4000 units to 4400 units.

c)

To determine

The impact of the price ceiling on the given incidents.

c)

Expert Solution

Explanation of Solution

When the government sets a price ceiling at $7 for the parking space, the quantity demanded increases from 4000 units to 4400 units while the quantity supplied falls from 4000 units to 3600 units. Since the quantity demanded exceeds the quantity supplied of houses so a price ceiling generates a shortage of parking space in the market. So, few people stay without getting a parking space.

d)

To determine

The impact of the price ceiling on the given incidents.

d)

Expert Solution

Explanation of Solution

Since there is a shortage of parking space, some fans arrive early to secure parking. The supporters' early arrival is an example of a waste of resources because they could be doing something more productive with the time they would have spent looking for parking spaces.

e)

To determine

The impact of the price ceiling on the given incidents.

e)

Expert Solution

Explanation of Solution

The inefficient allocation of resources is demonstrated by the fact that some die-hard fans have given up while parking spaces are being allocated to some less ardent supporters. In this case, resources are distributed to those who value the good less than those who cannot consume it despite having a higher willingness to get the parking space.

f)

To determine

The impact of the price ceiling on the given incidents.

f)

Expert Solution

Explanation of Solution

Due to the shortage of parking space, the parking-space owner has the incentive to rent spaces to the buyers and pretend they as non-paying friends and family at a higher price than $7 and pretend that buyers are friends and family customers are even ready to pay the higher price to save their time

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Answer 2

Question

Chapter 8, Problem 1CYU

a)

To determine

The impact of the price ceiling on the given incidents.

a)

Expert Solution

Explanation of Solution

The given scenarios represent the effect of the price ceiling on the number of parking spaces.

After the price ceiling, homeowners do not have the incentive to give their houses on rent because they are getting rent below the equilibrium rent in the market. Due to lower rent, some house-owners think that it’s not beneficial to rent out spaces. As a result, the number of houses available for rent falls from 4000 units to 3600 units.

Economics Concept Introduction

A price ceiling is a price control method used by the government to set the price of a product or service in the market. Purchasing or selling that product below that price would be a punishable act.

The government usually sets the price controlling method to safeguard the marginal group or a specific group, but these methods result in various types of inefficiencies in the market.

b)

To determine

The impact of the price ceiling on the given incidents.

b)

Expert Solution

Explanation of Solution

Due to the fall in rent demand for parking space increases as some people prefer to take their car as an alternative for carpooling. As a result, the demand for parking space rises from 4000 units to 4400 units.

c)

To determine

The impact of the price ceiling on the given incidents.

c)

Expert Solution

Explanation of Solution

When the government sets a price ceiling at $7 for the parking space, the quantity demanded increases from 4000 units to 4400 units while the quantity supplied falls from 4000 units to 3600 units. Since the quantity demanded exceeds the quantity supplied of houses so a price ceiling generates a shortage of parking space in the market. So, few people stay without getting a parking space.

d)

To determine

The impact of the price ceiling on the given incidents.

d)

Expert Solution

Explanation of Solution

Since there is a shortage of parking space, some fans arrive early to secure parking. The supporters' early arrival is an example of a waste of resources because they could be doing something more productive with the time they would have spent looking for parking spaces.

e)

To determine

The impact of the price ceiling on the given incidents.

e)

Expert Solution

Explanation of Solution

The inefficient allocation of resources is demonstrated by the fact that some die-hard fans have given up while parking spaces are being allocated to some less ardent supporters. In this case, resources are distributed to those who value the good less than those who cannot consume it despite having a higher willingness to get the parking space.

f)

To determine

The impact of the price ceiling on the given incidents.

f)

Expert Solution

Explanation of Solution

Due to the shortage of parking space, the parking-space owner has the incentive to rent spaces to the buyers and pretend they as non-paying friends and family at a higher price than $7 and pretend that buyers are friends and family customers are even ready to pay the higher price to save their time

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Answer 3

Question

Chapter 8, Problem 1CYU

a)

To determine

The impact of the price ceiling on the given incidents.

a)

Expert Solution

Explanation of Solution

The given scenarios represent the effect of the price ceiling on the number of parking spaces.

After the price ceiling, homeowners do not have the incentive to give their houses on rent because they are getting rent below the equilibrium rent in the market. Due to lower rent, some house-owners think that it’s not beneficial to rent out spaces. As a result, the number of houses available for rent falls from 4000 units to 3600 units.

Economics Concept Introduction

A price ceiling is a price control method used by the government to set the price of a product or service in the market. Purchasing or selling that product below that price would be a punishable act.

The government usually sets the price controlling method to safeguard the marginal group or a specific group, but these methods result in various types of inefficiencies in the market.

b)

To determine

The impact of the price ceiling on the given incidents.

b)

Expert Solution

Explanation of Solution

Due to the fall in rent demand for parking space increases as some people prefer to take their car as an alternative for carpooling. As a result, the demand for parking space rises from 4000 units to 4400 units.

c)

To determine

The impact of the price ceiling on the given incidents.

c)

Expert Solution

Explanation of Solution

When the government sets a price ceiling at $7 for the parking space, the quantity demanded increases from 4000 units to 4400 units while the quantity supplied falls from 4000 units to 3600 units. Since the quantity demanded exceeds the quantity supplied of houses so a price ceiling generates a shortage of parking space in the market. So, few people stay without getting a parking space.

d)

To determine

The impact of the price ceiling on the given incidents.

d)

Expert Solution

Explanation of Solution

Since there is a shortage of parking space, some fans arrive early to secure parking. The supporters' early arrival is an example of a waste of resources because they could be doing something more productive with the time they would have spent looking for parking spaces.

e)

To determine

The impact of the price ceiling on the given incidents.

e)

Expert Solution

Explanation of Solution

The inefficient allocation of resources is demonstrated by the fact that some die-hard fans have given up while parking spaces are being allocated to some less ardent supporters. In this case, resources are distributed to those who value the good less than those who cannot consume it despite having a higher willingness to get the parking space.

f)

To determine

The impact of the price ceiling on the given incidents.

f)

Expert Solution

Explanation of Solution

Due to the shortage of parking space, the parking-space owner has the incentive to rent spaces to the buyers and pretend they as non-paying friends and family at a higher price than $7 and pretend that buyers are friends and family customers are even ready to pay the higher price to save their time

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Answer 4

Question

Chapter 8, Problem 1CYU

a)

To determine

The impact of the price ceiling on the given incidents.

a)

Expert Solution

Explanation of Solution

The given scenarios represent the effect of the price ceiling on the number of parking spaces.

After the price ceiling, homeowners do not have the incentive to give their houses on rent because they are getting rent below the equilibrium rent in the market. Due to lower rent, some house-owners think that it’s not beneficial to rent out spaces. As a result, the number of houses available for rent falls from 4000 units to 3600 units.

Economics Concept Introduction

A price ceiling is a price control method used by the government to set the price of a product or service in the market. Purchasing or selling that product below that price would be a punishable act.

The government usually sets the price controlling method to safeguard the marginal group or a specific group, but these methods result in various types of inefficiencies in the market.

b)

To determine

The impact of the price ceiling on the given incidents.

b)

Expert Solution

Explanation of Solution

Due to the fall in rent demand for parking space increases as some people prefer to take their car as an alternative for carpooling. As a result, the demand for parking space rises from 4000 units to 4400 units.

c)

To determine

The impact of the price ceiling on the given incidents.

c)

Expert Solution

Explanation of Solution

When the government sets a price ceiling at $7 for the parking space, the quantity demanded increases from 4000 units to 4400 units while the quantity supplied falls from 4000 units to 3600 units. Since the quantity demanded exceeds the quantity supplied of houses so a price ceiling generates a shortage of parking space in the market. So, few people stay without getting a parking space.

d)

To determine

The impact of the price ceiling on the given incidents.

d)

Expert Solution

Explanation of Solution

Since there is a shortage of parking space, some fans arrive early to secure parking. The supporters' early arrival is an example of a waste of resources because they could be doing something more productive with the time they would have spent looking for parking spaces.

e)

To determine

The impact of the price ceiling on the given incidents.

e)

Expert Solution

Explanation of Solution

The inefficient allocation of resources is demonstrated by the fact that some die-hard fans have given up while parking spaces are being allocated to some less ardent supporters. In this case, resources are distributed to those who value the good less than those who cannot consume it despite having a higher willingness to get the parking space.

f)

To determine

The impact of the price ceiling on the given incidents.

f)

Expert Solution

Explanation of Solution

Due to the shortage of parking space, the parking-space owner has the incentive to rent spaces to the buyers and pretend they as non-paying friends and family at a higher price than $7 and pretend that buyers are friends and family customers are even ready to pay the higher price to save their time

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Subscribe now to access step-by-step solutions to millions of textbook problems written by subject matter experts!

Answer 5

Chapter 8, Problem 1CYU

a)

To determine

The impact of the price ceiling on the given incidents.

a)

Expert Solution

Explanation of Solution

The given scenarios represent the effect of the price ceiling on the number of parking spaces.

After the price ceiling, homeowners do not have the incentive to give their houses on rent because they are getting rent below the equilibrium rent in the market. Due to lower rent, some house-owners think that it’s not beneficial to rent out spaces. As a result, the number of houses available for rent falls from 4000 units to 3600 units.

Economics Concept Introduction

A price ceiling is a price control method used by the government to set the price of a product or service in the market. Purchasing or selling that product below that price would be a punishable act.

The government usually sets the price controlling method to safeguard the marginal group or a specific group, but these methods result in various types of inefficiencies in the market.

b)

To determine

The impact of the price ceiling on the given incidents.

b)

Expert Solution

Explanation of Solution

Due to the fall in rent demand for parking space increases as some people prefer to take their car as an alternative for carpooling. As a result, the demand for parking space rises from 4000 units to 4400 units.

c)

To determine

The impact of the price ceiling on the given incidents.

c)

Expert Solution

Explanation of Solution

When the government sets a price ceiling at $7 for the parking space, the quantity demanded increases from 4000 units to 4400 units while the quantity supplied falls from 4000 units to 3600 units. Since the quantity demanded exceeds the quantity supplied of houses so a price ceiling generates a shortage of parking space in the market. So, few people stay without getting a parking space.

d)

To determine

The impact of the price ceiling on the given incidents.

d)

Expert Solution

Explanation of Solution

Since there is a shortage of parking space, some fans arrive early to secure parking. The supporters' early arrival is an example of a waste of resources because they could be doing something more productive with the time they would have spent looking for parking spaces.

e)

To determine

The impact of the price ceiling on the given incidents.

e)

Expert Solution

Explanation of Solution

The inefficient allocation of resources is demonstrated by the fact that some die-hard fans have given up while parking spaces are being allocated to some less ardent supporters. In this case, resources are distributed to those who value the good less than those who cannot consume it despite having a higher willingness to get the parking space.

f)

To determine

The impact of the price ceiling on the given incidents.

f)

Expert Solution

Explanation of Solution

Due to the shortage of parking space, the parking-space owner has the incentive to rent spaces to the buyers and pretend they as non-paying friends and family at a higher price than $7 and pretend that buyers are friends and family customers are even ready to pay the higher price to save their time

Answer 6

Chapter 8, Problem 1CYU

a)

To determine

The impact of the price ceiling on the given incidents.

a)

Expert Solution

Explanation of Solution

The given scenarios represent the effect of the price ceiling on the number of parking spaces.

After the price ceiling, homeowners do not have the incentive to give their houses on rent because they are getting rent below the equilibrium rent in the market. Due to lower rent, some house-owners think that it’s not beneficial to rent out spaces. As a result, the number of houses available for rent falls from 4000 units to 3600 units.

Economics Concept Introduction

A price ceiling is a price control method used by the government to set the price of a product or service in the market. Purchasing or selling that product below that price would be a punishable act.

The government usually sets the price controlling method to safeguard the marginal group or a specific group, but these methods result in various types of inefficiencies in the market.

Answer 7

Chapter 8, Problem 1CYU

a)

To determine

The impact of the price ceiling on the given incidents.

Answer 8

a)

Expert Solution

Explanation of Solution

The given scenarios represent the effect of the price ceiling on the number of parking spaces.

After the price ceiling, homeowners do not have the incentive to give their houses on rent because they are getting rent below the equilibrium rent in the market. Due to lower rent, some house-owners think that it’s not beneficial to rent out spaces. As a result, the number of houses available for rent falls from 4000 units to 3600 units.

Answer 9

a)

Expert Solution

Answer 10

a)

Expert Solution

Answer 11

Expert Solution

Answer 12

Economics Concept Introduction

A price ceiling is a price control method used by the government to set the price of a product or service in the market. Purchasing or selling that product below that price would be a punishable act.

The government usually sets the price controlling method to safeguard the marginal group or a specific group, but these methods result in various types of inefficiencies in the market.

Answer 13

b)

To determine

The impact of the price ceiling on the given incidents.

b)

Expert Solution

Explanation of Solution

Due to the fall in rent demand for parking space increases as some people prefer to take their car as an alternative for carpooling. As a result, the demand for parking space rises from 4000 units to 4400 units.

Answer 14

b)

To determine

The impact of the price ceiling on the given incidents.

Answer 15

b)

Expert Solution

Explanation of Solution

Due to the fall in rent demand for parking space increases as some people prefer to take their car as an alternative for carpooling. As a result, the demand for parking space rises from 4000 units to 4400 units.

Answer 16

b)

Expert Solution

Answer 17

b)

Expert Solution

Answer 18

Expert Solution

Answer 19

c)

To determine

The impact of the price ceiling on the given incidents.

c)

Expert Solution

Explanation of Solution

When the government sets a price ceiling at $7 for the parking space, the quantity demanded increases from 4000 units to 4400 units while the quantity supplied falls from 4000 units to 3600 units. Since the quantity demanded exceeds the quantity supplied of houses so a price ceiling generates a shortage of parking space in the market. So, few people stay without getting a parking space.

Answer 20

c)

To determine

The impact of the price ceiling on the given incidents.

Answer 21

c)

Expert Solution

Explanation of Solution

When the government sets a price ceiling at $7 for the parking space, the quantity demanded increases from 4000 units to 4400 units while the quantity supplied falls from 4000 units to 3600 units. Since the quantity demanded exceeds the quantity supplied of houses so a price ceiling generates a shortage of parking space in the market. So, few people stay without getting a parking space.

Answer 22

c)

Expert Solution

Answer 23

c)

Expert Solution

Answer 24

Expert Solution

Answer 25

d)

To determine

The impact of the price ceiling on the given incidents.

d)

Expert Solution

Explanation of Solution

Since there is a shortage of parking space, some fans arrive early to secure parking. The supporters' early arrival is an example of a waste of resources because they could be doing something more productive with the time they would have spent looking for parking spaces.

Answer 26

d)

To determine

The impact of the price ceiling on the given incidents.

Answer 27

d)

Expert Solution

Explanation of Solution

Since there is a shortage of parking space, some fans arrive early to secure parking. The supporters' early arrival is an example of a waste of resources because they could be doing something more productive with the time they would have spent looking for parking spaces.

Answer 28

d)

Expert Solution

Answer 29

d)

Expert Solution

Answer 30

Expert Solution

Answer 31

e)

To determine

The impact of the price ceiling on the given incidents.

e)

Expert Solution

Explanation of Solution

The inefficient allocation of resources is demonstrated by the fact that some die-hard fans have given up while parking spaces are being allocated to some less ardent supporters. In this case, resources are distributed to those who value the good less than those who cannot consume it despite having a higher willingness to get the parking space.

Answer 32

e)

To determine

The impact of the price ceiling on the given incidents.

Answer 33

e)

Expert Solution

Explanation of Solution

The inefficient allocation of resources is demonstrated by the fact that some die-hard fans have given up while parking spaces are being allocated to some less ardent supporters. In this case, resources are distributed to those who value the good less than those who cannot consume it despite having a higher willingness to get the parking space.

Answer 34

e)

Expert Solution

Answer 35

e)

Expert Solution

Answer 36

Expert Solution

Answer 37

f)

To determine

The impact of the price ceiling on the given incidents.

f)

Expert Solution

Explanation of Solution

Due to the shortage of parking space, the parking-space owner has the incentive to rent spaces to the buyers and pretend they as non-paying friends and family at a higher price than $7 and pretend that buyers are friends and family customers are even ready to pay the higher price to save their time

Answer 38

f)

To determine

The impact of the price ceiling on the given incidents.

Answer 39

f)

Expert Solution

Explanation of Solution

Due to the shortage of parking space, the parking-space owner has the incentive to rent spaces to the buyers and pretend they as non-paying friends and family at a higher price than $7 and pretend that buyers are friends and family customers are even ready to pay the higher price to save their time