Reference no: EM131191430
1. Draw a corresponding demand curve and a supply curve.
2. Properly label the equilibrium price and quantity;
3. Then show what will happen to equilibrium if the City Council imposes a price ceiling at 16.
4. Copy and paste graph into word document where you will write out answers to the following questions:
- Are consumers of rental-housing in Prescott well-served by this price ceiling policy?
- Provide a careful economic analysis in support of this claim.
- Suppose the council is concerned that landlords will allow the quality of their rental units to deteriorate following the imposition of the ceiling price. What can you infer about the level of quality that landlords provision if consumers are worse off following the imposition of the ceiling price?
- Provide a careful economic analysis in support of this claim.
- Suppose now that the proposal before the City Council contemplates imposing a price ceiling on apartment rentals but not on house rentals. Would owners of rental houses in Manhattan be likely to support this proposal, or would they prefer the status quo (i.e., no price ceilings)?
- Provide the economic rationale for your answer. (In answering this question, you should ignore all supply-side considerations. In other words, just assume that supply adjusts fully to accommodate demand).
5. Find 2 recent scholarly articles, concerning proposals to increase the minimum wage in the U.S.
- Using a supply demand and in this case, price floor analysis similar to what is being done for the rental unit price ceiling.
- Write a 1-2 page analysis, based on sound economic equilibrium price.
6. To create the demand curves needed for this assignment, create an excel file:
- With prices column, including prices from $1 to $30, using the formulas.
- Compute quantity demanded for each price and quantity supplied for each price.
- Finally, using the links about, create the graph.
Length should be 3-5 pages, not including the title page and references.
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