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Rent controls place price ceilings on rents at levels below market equilibrium rental rates for the stated purpose of making housing more affordable for low-income families. Using demand and supply analysis, answer the following questions:
How does imposing rent controls affect the number of housing units available to low-income families? Illustrate your response using graphs.Under rent controls, can all low-income families get rent-controlled housing?
Who gains from rent controls? Who loses?
What alternative policy would you propose to make plenty of housing available to low-income families that would not be subject to the problems of rent controls? Illustrate the effects on supply and demand from part 1.
Differentiate the structural change and managerial opposition hypothesis as they relate to the decline in unionism. Determine which view do you think is more convincing?
In the late 1990s a growing number of economists argued that world policymakers were focusing too much on fighting inflation. The economists also argued that the technical level of potential output had risen. Show their argument using the AS/AD mo..
Suppose the domestic appliances industry faces severe foreign competition, and asks you to prepare a position paper its lobbyist.
Explain how much pollution reduction should Appalachian Coal Mining undertake.
The following events have their initial impact on which of the following: aggregated demand, short-run aggrevated supply, long-run aggregated supply, or both short-run and long-run aggregated supply. Do the curves shift to the right or left.
Atlantis is a small, isolated island in South Atlantic. The inhabitants increase potatoes and catch fresh fish. The accompanying table shows the maximum yearly output combinations of potatoes and fish that can be produced.
Illustrtae what is the profit-maximizing level of price and quantity for this monopolist.
Suppose you decide to withdraw $100 in currency from your checking account. What is the effect on M1? Ignore any actions the bank might take as a result of the withdrawal.
Audio engineer quit job & gave up salary of $175,000 per year to start own business. Partial income statement listed below:
Illustrate what Information do you require to perform a marginal analysis to identify the profit-maximizing output.
Draw up a payoff matrix to illustrate your strategy and what are the likely implications of this for consumers
Elucidate how could this technological change contribute to ending bottlenecks and rush hour congestion. What are some of the problems that might develop with such a system.
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