Reference no: EM131246016
For each problem, answer the question in words and graphically. Try to explain things so that someone unfamiliar with economics could understand.
Part II: Assume that New York City’s economy has made a comeback. That and other trends have resulted in more rich people and more extremely rich people in New York City (NYC). However, assume that at the same time income inequality has increased so much that people at the very bottom become worse off. If you decide to make any assumptions in order to answer the questions, make sure that your assumptions are reasonable and noted in your answers. Discuss changes in price and quantity.
1. What has the booming economy done to the market for renting apartments in NYC? Illustrate in a supply and demand diagrams from before the boom (= initial state) to during the boom (= final state). Explain in words what effect the boom had and why.
2. Remember that with a supply and demand analysis, the product being analyzed can be defined with many levels of aggregation. Now disaggregate the market for renting apartments and consider the effects of the booming economy markets on luxury apartments and on “bare bones” apartments separately. (Assume there are also middle range apartments but ignore them in your analysis.) For now, consider justthe direct effects of the NYC economy on each. Illustrate in two side-by-side supply-and-demand diagrams (one for luxury, one for bare bones) and explain in words.
3. Now consider how the two real estate markets - luxury apartments and bare bones apartments – interact. Given what you found about how prices change in problem 2, how do you think landlords will react and what will happen to the supply of rental housing in each market? Again, illustrate in two side-by-side supply-and-demand diagrams and explain in words.
4. Now consider the labor market for cleaners and other who work in service for the rich. How will that labor market have been affected by the growing ranks of the very wealthy in NYC? Describe in words and illustrate in a supply-and-demand diagram for service labor, both before (= initial state) and during the boom (= final state).
5. Now consider how the effects of the service labor market have affected the market for bare bones apartments. Illustrate in a supply-and-demand diagram and explain in words.
6. Illustrate in a composite diagram for the market for bare bones apartments, the combined effects of (2), (3) and (5), showing both before (= initial state) and during the boom (= final state). Explain your diagram in word.
Craft concise and convincing policy statement on trade
: Candidates Weaponize Free-Trade Issue, Politico. Why Critics of Free Trade are Talking China, Not NAFTA, FiveThirtyEight. Economists Actually Agree on This: The Wisdom of Free Trade, New York Times. After reading each of the articles, you will play t..
|
Making sure to label all axes and intercepts
: The city of Detroit charges its residents 50 cents for the each of the first 100 gallons of water. For each gallon over 100, and under 200 gallons, the city charges $1.00 per gallon. For each gallon over 200 gallons, the city charges $2.00 per gallon..
|
Impact the equilibrium condition of world petroleum market
: Solar and wind or water power energies are the substitutes to fossil fuels (e.g. petroleum). In the 21st century, with environmental concerns, the environmental advocates emphasize the consumption of ‘clean’ energy to save our planet. what would such..
|
Inflation redistributes income
: Your readings argue that inflation “redistributes income” in ways that are not necessarily fair or equitable. Some individuals or companies are much more vulnerable to the effects of inflation than others. Some people and companies have the ability t..
|
What has the booming economy done to the market
: Assume that New York City’s economy has made a comeback. That and other trends have resulted in more rich people and more extremely rich people in New York City (NYC). What has the booming economy done to the market for renting apartments in NYC?
|
Depreciation on equipment totaled
: Prepare the necessary adjusting entries at December 31, 2015, for the Jasper Company for each of the following situations. Assume that no financial statements were prepared during the year and no adjusting entries were recorded. Depreciation on equip..
|
Consider representative firm that produces using capital
: Consider a representative firm that produces using capital (K) and labor (N), but that owns no capital. The firm can hire workers in the labor market at a wage w and can rent capital market at a rental rate r (that is, the firm can rent K units of ca..
|
What would happen if countries curtailed or stopped trading
: Why do countries trade with each other? What would happen if countries curtailed or stopped trading? Read an article about the current fight over the TPP free trade pact that is before Congress.
|
Explain how a conviction changes probationer
: Explain how a conviction changes a probationer/parolee’s legal status with regards to searches, the exclusionary rule, and Miranda warnings. Use appropriate court decisions to support your response. Identify the advantages and disadvantages of probat..
|