Explain whether there is a shortage of apartments-surplus

Assignment Help Business Economics

Reference no: EM13976455

Suppose that the City of Detroit enacts a rent control law that reduces all current rents by 10%. Give the short run effects of the law:

A. If the Detroit apartment rental market is competitive.

B. If the Detroit apartment rental market is controlled by United Landlords, a single firm that owns all of the apartments in Detroit and the relevant surrounding areas.

In both cases, be sure to EXPLAIN the effects of the law on the rental price, and on the quantity of apartments rented. Also

Explain whether there is a shortage of apartments, a surplus, or neither.

Reference no: EM13976455

Questions Cloud

Directors remuneration : Directors' Remuneration (Corporate Governance Ethics module), In the first part you have to critically evaluate Vincent Cable's comment. So, I would like you to give your verdict as to what extent you agree with the statement. I would like you to pro..

Graph the marginal cost curve for plant-resulting total cost : The manager of Green Chemical Co. has been informed that this year’s production target Q for organic fertilizer (in millions of tonnes) is 20. The manager is asked to allocate the production across the company’s two plants. How should the manager all..

Compute the short-run equilibrium price : Assume that there are two types of consumers. In particular, consumers of type 1 has utility function u(x, y) = x0.5 y0.5, whereas consumer of type 2 has u(x, y) = x0.3 y0.7. Find the Marshallian demands of x for both types of consumers. Compute the ..

Define what it means for allocation of goods to be efficient : Suppose that there are two goods, apples and oranges, and two individuals, John and Mike. John has four apples and two oranges, and Mike also has four apples and two oranges. We will call this “point A.” Define what it means for an allocation of good..

Explain whether there is a shortage of apartments-surplus : Suppose that the City of Detroit enacts a rent control law that reduces all current rents by 10%. Give the short run effects of the law: If the Detroit apartment rental market is competitive. Explain whether there is a shortage of apartments, a surpl..

What is the present worth of savings at an interest rate : A low - cost noncontact temperature measuring tool may be able to identify railroad car wheels that are in need of repair long before costly structural failure occurs. If the BNSF railroad saves 100,000 in year 1, $110,000 in year 2, and amounts incr..

Comparing the values across the two companies : Calculate the Altman Z-score for Ford and Toyota. What inferences do you draw from these values? What inferences do you draw from comparing the values across the two companies? What do you predict would happen if Ford’s auditors issued a going-concer..

Determine the engineering economy symbols : The cost of energy for operation high lift pumps in a water distribution system was $1.4 million for the first three years. Beginning in year four, the cost increased by $30,000 each year for the next 12 years. The cost of the energy is at an interes..

Perfectly competitive firms-monopolies-oligopolies : Discuss the importance of advertising in increasing sales for perfectly competitive firms, monopolies, oligopolies, and firms with monopolistic competition.

User Account

All Pages