Reference no: EM132789905
Assignment: 1. Amy's Diner and Joe's Burger Stop are located in the same neighborhood. Both have similar menus that include hamburgers, French fries, and soft drinks. Assume Amy's supplier raises the price of hamburger meat, while Joe's does not. Using the supply and demand model, graphically show and provide a written explanation for each of the following:
(a) The equilibrium price and quantity of hamburgers Amy sold
(b) The equilibrium price and quantity of French fries Amy sold
(c) The equilibrium price and quantity of hamburgers Joe sold
(d) The equilibrium price and quantity of soft drinks Joe sold
Your response should be at least 150-225 words (2-3 paragraphs) in length, including graphs. Be sure to reference at least one scholarly source to support your answer.
2. In the United States, price floors are commonly used to support farmers, such as for dairy products. Assume several U.S. trading partners impose tariffs on dairy products exported from the United States. The tariffs are effective and are reducing dairy exports from the United States and have pushed the domestic equilibrium price of milk below the price floor.
Using a supply and demand model, illustrate what happens to the U.S. domestic price of milk, quantity of milk sold in the United States, and any surplus or shortage of milk. Be sure to support your graph with a written explanation. Your response should be at least 75-150 words (1-2 paragraphs) in length, including the graph and explanation. Be sure to reference at least one scholarly source to support your answer.
3. In some cities, rents have skyrocketed, and long-term tenants find they can no longer afford to stay in their apartments. As a result, numerous proposals have been made to enact rent control ordinances that would keep rents in rent-controlled units below market clearing levels. Use the supply and demand model to illustrate and explain:
(a) The effects of rent control on equilibrium price and quantity of apartments offered
(b) Incentives for apartment owners to build new apartments
(c) The ability of long-time renters to remain in their housing
(d) The ability of newly employed workers to find apartments
Based on your answers, do you recommend rent control as a solution to the problem? What other options could be used to solve the problem? Do you think it is a demand or supply problem or both?
Your response should be at least 150-225 words (2-3 paragraphs) in length, including graphs with explanations. Be sure to reference at least one scholarly source to support your answer.