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Case study: rent ceilings in New York City. Suppose the demand and supply curves for rental housing units have the typical shapes and that the rental housing market is in equilibrium. Then, government establishes a rent ceiling below the equilibrium level.
A. What happens to the quantity of housing available?
B. What happens to the quality of housing and why?
C. Who benefits from rent control?
D. Who loses from rent control?
E. How do landlords of rent-controlled apartments try to get tenants to leave?
The business world become more competitive. If we are to compete with firms in Singapore, Indonesia, and Malaysia, we must keep our costs down. Labor accounts for 75 percent of expenses.
Explain how does the availability of substitutes affect purchasing decisions.
Periodically you hear of garbage strikes. Is garbage pickup a public good? Does garbage create externalities? What should be done about it? Why does garbage collection seem to attract organized crime?
A country with a relatively small + aggregate demand shock (a shift outward in the AD curve) may have a substantial economic boom, but sometimes countries that have massive increase in the AD curve (hyperinflation countries like Germany before WWI..
Local government in a west Coast college town is concerned about recent explosion in apartment rental rates for students and other low income renters.
The effect on the demand curve for hybrid cars (run on electric and gas and get much greater gas mileage) vs. regular cars (run only on gas) when the price of gas doubles. You need two graphs.
Illustrate what does, and what doesn't, the Solow model tell us about the sources of economic growth and the best policies for attaining high per capita incomes.
Question:. Explain why there are long-term Federal government budget problems. Explain why the base-line forecast of the CBO is misleading.
Explain how much will your industry's total revenues (revenues from both products) change if you increase the price of good X by 1 percent.
Assume whether you believe the organization will expand or contract as well as address the price elasticity of demand and competitors.
Suppose that a less developed country known as LDC encourages direct foreign investment
Consider another economy in which the unemployment rate over the next three years is 6%, 7%, and then 4%. According to Okun's Law, what are the levels of short run output (Y tilde) in this economy? Suppose short-run output over the next four years ..
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