How much would go to landlords

Assignment Help Microeconomics

Reference no: EM13936225

Governor Walker is frustrated that so many students who receive subsidized education in the uw system move to Chicago after graduating. One recommendation from a big shot at UW-Madison is to designate a 5 by 5 mile area in Milwaukee. Students who move to this zone and work in Milwaukee after graduation will receive tax credits worth 10,000 per year for a few years after graduation.

a) You are told that students demand for housing in the zone is very elastic (ND=-4) but that it is somewhat difficult to add new housing (ns=1). From an economic standpoint, how much of the $10,000 would go to students moving to the zone. How much would go to landlords?

b) if rent in the zone would have been $10,000 per year without the subsidy, and 20,000 students would have lived in the zone without the subsidy, how many students will live in the zone if the subsidy is introduced?

c) some recent research has suggested that college educated residents generate positive externalities to cities. How large would this positive externality need to be (per student) to justify this policy (hint: compare the program's dead weight loss to the number of new graduating students attracted to the zone)?

Reference no: EM13936225

Questions Cloud

Marketing strategy for product-service of a business entity : This assignment involves the preparation of Marketing Strategy for a product or service of a business entity of one choice. One may choose either one own organization or an organization with which one is familiar.

Number of sources to obtain the relevant information : You will need to research a number of sources to obtain the relevant information. At least four of these sources should be used for your report and your presentation. The resources must be credible, current (no earlier than 2010) and available in ..

Identifying important components of confronting death : Write a formal paper of 250-300 words identifying important components of the topic. Include the summary of the impact on social values, morals, norms, and nursing practice - Confronting Death: Who Chooses? Who Controls?

How relationship of uk and canadian interest rate changed : Explain how the relationship between the UK interest rate and the Canadian interest rate changed from the beginning of the month until the end of the month.

How much would go to landlords : if rent in the zone would have been $10,000 per year without the subsidy, and 20,000 students would have lived in the zone without the subsidy, how many students will live in the zone if the subsidy is introduced?

How are the journals different : One of the things that DBA practitioner-scholars do is keep up with the scholarly literature in their field. In which scholarly journals are you most likely to find articles and research in your field of specialization? How are the journals differ..

Write a top-down backtracking parser : Should be a 1 page java coding and should be as described in the paper. The command line arguments must be as mentioned in the paper. In the assignment one has to write a top-down backtracking parser called TDBP.java.

Evaluate an organizations strategic business units : To evaluate an organization's Strategic Business Units (SBU), the Boston Consulting Group developed a portfolio performance framework.

Why european mncs consider hedging their future remittances : Why should European MNCs consider hedging their future remittances from Indonesia to their parent even when the forward discount on the currency (rupiah) is so large?

User Account

All Pages