Business, 11.12.2019 20:31 Jessietorres2123

The elected officials in a west coast university town are concerned about the "exploitative" rents being charged
to college students. the town council is contemplating the imposition of a $350 per month rent ceiling on
apartments in the city. an economist at the university estimates the demand and supply curves as: qd = 5600 - 8p qs = 500 + 4p, where p = monthly rent, and q = number of apartments available for rent. for purposes of this analysis, apartments can be treated as identical.
a . calculate the equilibrium price and quantity that would prevail without the
price ceiling. calculate producer and consumer surplus at this equilibrium
(sketch a diagram showing both). b. what quantity will eventually be available if the rent ceiling is imposed?
calculate any gains or losses in consumer and/or producer surplus. c. does the proposed rent ceiling result in net welfare gains? would you advise
the town council to implement the policy?

Answers: 3

Show answers

Another question on Business

Business, 22.06.2019 13:30

You operate a small advertising agency. you employ two secretaries, a graphic designer, three sales representatives, and an office coordinator. 1. what types of things would you consider when determining how to compensate each position? describe two (2) considerations. 2. what type of compensation plan would you use for each position?

Answers: 1

Answer

Business, 22.06.2019 17:30

According to management education expert ashok rao, companies can increase their profitability by through careful inventory management. a. 5% to 10% b. 10% to 25% c. 20% to 50% d. 75%

Answers: 1

Answer

Business, 22.06.2019 18:00

Carlton industries is considering a new project that they plan to price at $74.00 per unit. the variable costs are estimated at $39.22 per unit and total fixed costs are estimated at $12,085. the initial investment required is $8,000 and the project has an estimated life of 4 years. the firm requires a return of 8 percent. ignore the effect of taxes. what is the degree of operating leverage at the financial break-even level of output?

Answers: 3

Answer

Business, 22.06.2019 20:20

You are the cfo of a u.s. firm whose wholly owned subsidiary in mexico manufactures component parts for your u.s. assembly operations. the subsidiary has been financed by bank borrowings in the united states. one of your analysts told you that the mexican peso is expected to depreciate by 30 percent against the dollar on the foreign exchange markets over the next year. what actions, if any, should you take

Answers: 2

Answer

You know the right answer?

The elected officials in a west coast university town are concerned about the "exploitative" rents b...

Questions