Compare the equilibrium price and quantity of consumer

Reference no: EM13784301

Suppose that, prior to the passage of the Truth in Lending Simplification Act and Regulation Z, the demand for consumer loans was given by Qdpre-TILSA = 10 - 80 P (in billions of dollars) and the supply of consumer loans by credit unions and other lending institutions was QSpre-TILSA = 4 + 80 P(in billions of dollars).

The TILSA now requires lenders to provide consumers with complete information about the rights and responsibilities of entering into a lending relationship with the institution, and as a result, the demand for loans increased to Qdpost-TILSA = 20 + 80 (in billions of dollars).

However, the TILSA also imposed "compliance costs" on lending institutions, and this reduced the supply of consumer loans to QSpre-TILSA = 2 + 80P (in billions of dollars).

Based on this information, compare the equilibrium price and quantity of consumer loans before and after the Truth in Lending Simplification Act.

Reference no: EM13784301

Questions Cloud

Most significant impact on modern psychology : What person or event in history do you think has had the most significant impact on modern psychology? Why? What person or school of psychological thought is most consistent with your personal beliefs? Explain how your beliefs fit their theoretica..

The analysis of the financial statements and projections : Describe the ratios that should be used to raise short-term and long-term financing.

An asignment on millennium development goals : Millennium Development Goals.

What words or phrases are used in your workplace : What words or phrases are used in your workplace that are particular to that setting? In what context, is it appropriate to use this vocabulary?

Compare the equilibrium price and quantity of consumer : Compare the equilibrium price and quantity of consumer loans before and after the Truth in Lending Simplification Act.

Develop our knowledge of language acquisition : Many resources are available to help us continue to develop our knowledge of language acquisition. As professionals, you will need to identify and evaluate the resources available to you. Please spend some time evaluating professional resources ..

Population means of the first factor : Keep in mind that your goal is to demonstrate to me that you understand the different requirements for each of these tests. Don't assume that I can infer what your comparison is. It is important to be precise and specific. Don't add 'flowery' tex..

Group decision-making-barriers and improvements : As you develop theoretical knowledge and understanding, you should apply what you are learning in this assignment, as well as, future assignments.

Write a paper about essay two languages are better than one : Write an analysis paper about essay "Two Languages Are Better Than One" by Wayne P. Thomas and Virginia P. Collier.

User Account

All Pages