Compare the equilibrium price and quantity of consumer

Assignment Help Microeconomics
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.

Reviews

Write a Review

Microeconomics Questions & Answers

  Alcohol generates a negative externality in consumption

Suppose alcohol generates a negative externality in consumption. If so, then

  What monetary policy is

What monetary policy is, how it is related to banks, and how it affects interest’s rates, inflation, GDP and unemployment. Include information on what money is and why we use it along with the money multiplier.

  Explain possible pitfalls for such strategy

Explain possible pitfalls for such strategy from GEHs perspective - identify solutions to the possible pitfalls for the strategy - For each operation (India and China), evaluate GEH's human resource strategy.

  The level of real aggregate demand for output in a macro

Suppose the level of real aggregate demand for output in a macro economy is a negative function of the expected real interest rate- the nominal interest rate minus the expected inflation rete. Suppose also that the monetary authorities are setting th..

  Us taxpayer money should not be used to bail out major banks

The CEO of bank of America Brian Moynihan recently stated that US taxpayer money should not be used to bail out major banks.

  Describe the behavior of labor markets

People from the countryside, especially from minority tribes, move to the vibrant cities, earn what they felt they need and return to the countryside, returning more quickly the more they earn per hour.

  Is this the good way to finance programs to improve health

the government decides to tax cookbooks because they feel that they encourage overeating and can lead to health issues

  What is income-expenditure model

As part of your answer explain what happens when aggregate expenditure either exceeds or falls short of output in the current period and what impact this has on production in the next period.

  Impacts regarded as either positive or negative

Normal 0 false false false EN-US X-NONE X-NONE How are labor terms and con..

  10 annual purchases of 1000 worth of common stock the stock

10 annual purchases of 1000 worth of common stock. the stock paid no dividends. then for 4 years all the stock sold for

  Assume you are hired as a consultant by barks industries a

assume you are hired as a consultant by barks industries a company in a monopolistically competitive industry. how

  Provide a real-world example of a market

The opening statement on the website of the Organization of Petroleum Exporting Countries (OPEC) says, “…OPEC’s eleven numbers are all developing countries whose economies are heavily reliant on oil export revenues.They therefore seek stable oil pric..

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd