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In tight housing markets rent controls are often applied to hold price of housing to a reasonable level. How does this policy affect the relative gains of tenants and landlords and the allocative function of prices— (answers) it prevents landlords from gaining at the expense of tenants : the allocative function of prices is impaired. -- it prevents landlords from gaining at the expense of tenants : the allocative function of prices is NOT impaired. -- it prevents tenants from gaining at the expense of landlords : the allocative function of prices is impaired-- it prevents tenants from gaining at the expense of landlords : the allocative function of prices is NOT impaired
Using the model of the money market for the case of the interest rate control, shift the appropriate curve(s) to show the impact of a decrease in the interest rate caused by a
You purchase a very small 1-bedroom apartment in New York for $1,000,000. You obtain a mortgage with a fixed monthly interest rate, ic = 0.42%/month. You can pay this loan off
Earlier this year, Greek citizens, fearing currency changes or capital controls, took billions of euros out of their bank accounts. Some of it they sent to banks in other coun
Consider the following demand and supply relationships in the market for golf balls: Qd = 90 − 2P − 2T and Qs = −9 + 5P − 2.5R, where T is the price of titanium, a metal used
A consumer has preferences between two goods, hamburgers (measured by H) and milkshakes (measured by M). His preferences over the two goods are represented by the utility func
Helen’s preferences over CDs (C) and sandwiches (S) are given by U(S, C) = SC + 10(S + C), with MUC = S + 10 and MUS = C + 10. If the price of a CD is $9 and the price of a sa
Consider the iron ore production industry, and assume that there are just two producers, FM and BHP. Initially assume that both firms are identical in terms of their productio
Assume that each firm is free to set its production level, but each firm can communicate (via the business press) what they plan to do first. Using an economic model, show tha
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