Show model with highly inelastic supply curve

Assignment Help Business Economics
Reference no: EM131101698

Show a model with a highly inelastic Supply Curve (such as rental units in New York City). Show the effects of a price ceiling on this market. Show:

Equilibrium quantity

Price ceiling quantity

Equilibrium price

Price ceiling price

Consumer Surplus

Producer Surplus

Note any deadweight loss due to the price ceiling. Is it more or less than the standard model?

What is this model TELLING US?

Reference no: EM131101698

Questions Cloud

Wage pass-through to internalize insurance benefits : using "Wage pass-through" to internalize insurance benefits mean. IF an employee has "firm specific" talents and abilities this means that. indemnity insurance provided incentive for
Write a program to simulate the motion of the robot : Write a program to simulate the motion of the robot using the equations from class. You should assume that the robot changes its wheel velocities instantaneously
Who farms raw cotton in perfectly competitive market : You are economic consultant for Jack, who farms raw cotton in a perfectly competitive market. One day he gives you the following data at his present level of production: Draw a graph for the raw cotton market and a graph for Jacks farm current situat..
Business policy and strategy-industry economic features : Industry Economic Features—What are the industry’s dominant economic features? Industry Competitive Forces—What causes the industry competitive structure and business environment to change? Industry KSF’s—What are the key success factors for future c..
Show model with highly inelastic supply curve : Show a model with a highly inelastic Supply Curve (such as rental units in New York City). Show the effects of a price ceiling on this market. Show: Note any deadweight loss due to the price ceiling. Is it more or less than the standard model?
Religion does not permit them to use birth control measures : How would you classify people that have religious beliefs or their religion does not permit them to use birth control measures? This can affect the validity of your experiment.
Budget line in consumption and leisure decision problem : One of the policies was to put a tax on people who didn’t buy health insurance. That is, if their wage was w before and now they don’t buy insurance then they receive only a fraction of the previous wage, so (1 − t)w. Show how this affects the budget..
What would be expected to happen to the total quantity : According to a study, the price elasticity of jewelry is 1.2 and its income elasticity is 1.5 in the U.S. a. Would you suggest that Patton’s Jewelry Company cut its prices to increase its revenue? b. What would be expected to happen to the total quan..
Firm marginal revenue and marginal cost : If a firm's marginal revenue from its 100th unit of output is $50 and the marginal cost from its 100th unit of output is $45, then in the short run this firm should:

Reviews

Write a Review

Business Economics Questions & Answers

  Explain whether the resource cost is explicit or implicit

For each one of the costs below, explain whether the resource cost is explicit or implicit, and give the annual opportunity cost for each one. Assume the owner of the business can invest money and earn 10 percent annually. A computer server to run th..

  Probable effect on interest rates-inflation and unemployment

Economic growth has slowed in the last quarter of the year to 0.6% from the previous third quarter growth rate of 4.9%. The economy lost 12,000 jobs in the last month of the previous year while shedding 80,000 jobs during the months of January and Fe..

  Determine consumption and sacving of maria in period

Maria decides to switch a major and is now a student in business. in period 2, she will have a BA in business and her income will be $88000. determine Maria's lifetime wealth. determine consumption and sacving of maria in period 1 and period 2.

  What is the specific marketplace-failure justification

illustrate what is the specific marketplace-failure justification for governing spending on public universities

  Find the profit maximization level of output and price

The market demand curve for a monopolist is as follows: Q = 18000 – 400P Marginal cost of this firm is $ 20 and is constant. Find the profit maximization level of output and price. Find the revenue maximization price and quantity.

  Mission must comprise apa format

The mission must comprise APA format references on the final slide and in-text references on the slide where information is presented.

  Decrease in the average length of job search

Which of the following will lead to a decrease in the average length of job search?

  What is the monthly loan payment

You just graduated college and want to celebrate by buying a new car. The car you like can be purchased for $35,000. Your old college clunker is worth $4,000 on a trade. The dealer is offering 0.9% per year financing on the entire purchase price. Wha..

  Calculate the price elasticity of demand at the equilibrium

Consider a market whose supply and demand curves are given by P = 4Q ^S and P = 12 - 2Q^D. Calculate the equilibrium price and quantity (P* and Q*) assuming the market is unregulated. What is the total surplus at the equilibrium? Calculate the price ..

  Most important contributor to increases in the productivity

the most important contributor to increases in the productivity of Americans labor over the 1929-2000 period was Illustrate what.

  Qairjet best parts inc would like to issue 20-year bonds to

q.airjet best parts inc. would like to issue 20-year bonds to obtain remaining funds for the new mexico plant. the

  What are the coordinates of your endowment point

There are two possible states of the world next year. If you keep your job, your income is equal to your labor market earnings E plus your non-labor income Y. Consider a graph with “keep job payoff” on the horizontal axis, and “lose job payoff” on th..

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