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a) Who benefits from rent ceilings? b) Who suffers? c) What are the long-term effects of rent ceilings? d) How can landlords and tenants cheat on rent ceilings? e) Do you think the rent ceilings might lead to more discrimination against certain groups?
For each of the following items, identify whether it is included or excluded in calculating this year's GDP. In each instance, briefly explain why. (Note: since you are not responsible in this course for "Measures of Income" section in Chapter 5, non..
The supply and demand curves for corn are as follows: QD = 3,750 - 725P QS = 920 + 690P, where Q = millions of bushels and P = price per bushel. Calculate the equilibrium price and quantity that would prevail in the free market. Calculate the loss in..
Production for a product is planned at 5,000 units per week. The standard operation time for one particular operation is 2.45 minutes. The facility operates 40 hours per week. Suppose that there was a fallout of 10% in the operation that proceeds thi..
assume that government establishes a cost floor below market equilibrium for rents on how utilizing. Illustrate what will be main effects of this cost floor. Demonstrate your answer graphically.
Photographs such as image B were extremely common in the media in 1989, showing East Berliners shopping in Western stores.
As we become more aware of our impact on the environment, citizens and legislators are faced with decisions which impact local, state, and national economies. For example, government restrictions on construction due to effects on endangered species o..
A contractor is considering whether to buy or lease a new machine for her layout site work. Buying a new machine will cost $12,000 with a salvage value of #1200 after the machine's useful life of 8 years. On the basis of an internal rate of return an..
Suppose a monopoly can produce any level of output it wishes at a constant marginal (and average) cost of $5 per unit. Assume the monopoly sells its goods in two different markets separated by some distance. The demand curve in the first market is..
Name at least four each of benefits, disband fits, and costs. How could these values be estimated? What are some likely spillovers?
Assume a consumer who buys cola and ice cream for snacks. Assume that the price of ice cream increases. Which of the following is an example of the substitution effect.
The market for tennis shoes has a horizontal supply curve and a linear, downward-sloping demand curve. Currently the government imposes a tax of t on every pair of tennis shoes sold and does not tax other goods. The government is considering a plan t..
Discuss each of the pricing strategies below. What conditions are necessary to make each strategy successful in terms of increasing profits?
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