Housing units installed on permanent foundation

Assignment Help Business Economics
Reference no: EM131172338

Mobile homes are housing units installed on a permanent foundation owned by a landlord. Although a resident owns the home, she rents the foundation from the landlord. In theory, owners of mobile homes can transfer their home to a different foundation if the rent becomes too steep, but uninstalling, transporting, and reinstalling the mobile home is usually prohibitively expensive. This “lock-in” effect encourages state legislatures to create rent controls for mobile home foundations. Which statement is a plausible, unintended consequence of these laws?

A) The price of mobile homes is artificially low.

B) There are few new mobile home foundations constructed.

C) The price of transporting mobile homes is artificially high.

D) There are few new buyers of mobile homes.

Reference no: EM131172338

Questions Cloud

Supply-side economics and trickle-down policy : I recognize the term “supply-side economics” as phrased in my high school course, “trickle-down policy”. The increase of goods without a shift in aggregate demand curve will increase supply, and lower prices. A supply-based policy is a tool of govern..
Developing country devotes extensive resources : Suppose that a developing country devotes extensive resources towards improving the education and skill level of the labor force. How might this help the country avoid a coordination failure? Is this strategy likely to be successful? Why or why not?
Calculate supply price elasticity and interpret : Graph the demand and supply curves with appropriate intercepts. Calculate equilibrium. Calculate Demand Price Elasticity and interpret. Calculate Supply Price Elasticity and interpret.
Housing units installed on permanent foundation : Mobile homes are housing units installed on a permanent foundation owned by a landlord. Although a resident owns the home, she rents the foundation from the landlord. In theory, owners of mobile homes can transfer their home to a different foundation..
Housing units installed on permanent foundation : Mobile homes are housing units installed on a permanent foundation owned by a landlord. Although a resident owns the home, she rents the foundation from the landlord. In theory, owners of mobile homes can transfer their home to a different foundation..
How companies EOC policies-practices create advantages : The new corporate imperative and The Employer of Choice, identify two companies to compare and contrast in terms of EOC. The companies should be similar in size based on annual revenue or number employees, but do not have to be competitors or in the ..
Branding portion of the marketing communications plan : Create the Positioning and Branding portion of the Marketing Communications Plan using the business and information presented in the case study. They want to keep the “family’s” restaurant as a legacy to their family members who left it to them. Howe..
Supply model used to depict the currency market : “With . . . inflation at 6.5%, Latin America’s largest economy is in a straitjacket from which the new government may have a hard time escaping.” Describe the impact on the market for Brazilian real of the changes in relative inflation rates by answe..
The comparative advantage in rice production : Below are some possible combinations of rice and fish for people living on the Islands of Alpha and Beta. Suppose the Alphas currently produce and consume 10 pounds of rice and 60 pounds of fish. What is the opportunity cost of 1 pound of rice on Alp..

Reviews

Write a Review

Business Economics Questions & Answers

  Should the theater increase its price

What is the elasticity of its demand with respect to advertising? Now suppose the theater increases the number of its ads to 250. Should the theater increase its price following this ad campaign? Explain.

  Description of the initiative financing source

Principles of economics for evaluating and assessing the need for the public health initiative, A brief description of whether the initiative is a micro or macroeconomic program, A determination of whether the result of the initiative is a public or ..

  Increase in the real interest rate

Suppose that the investment demand curve in a certain economy is such that investment declines by $120 billion for every 1 percentage point increase in the real interest rate. Also, suppose that the investment demand curve shifts rightward by $150 bi..

  Devastating impact on our national economy

In 2009 the American auto industry was in a dire economic state. Chrysler was in Chapter 11, GM was on the brink of bankruptcy, and Ford’s future was at best uncertain. The demise of the U.S. auto industry would have a devastating impact on our natio..

  Q1 bob consumes two commodities x and y say chocolate and

q1. bob consumes two commodities x and y say chocolate and classical music. more y never hurts but in order to enjoy y

  Public debt is considered to be the greatest burden

Interest payments on which bonds that make up the U.S. public debt is considered to be the greatest burden on the U.S. economy? Bonds: a) owned by Americans. b) owned by the Rest of the World. c) owned by the Social Security trust fund. d) owned by t..

  Calculate the optimal level of spending for both agents

European Commission’s preference for a common competition policy is given by the following function: P=1−X, where P denotes price, and X denotes the level of spending allocated to such policy. Draw a diagram in which you illustrate the preferences of..

  Q the tax reform act of 1986 contains a clause

q. the tax reform act of 1986 contains a clause appropriating tax dollars for any taxpayer incorporated on september 7

  Exchange rate determined in freely floating rate system

Can there be a deficit on Current Account and a deficit on Capital Account at the same time? Explain. Explain why currency depreciation leads to an improvement in a nation's balance of trade. How is the exchange rate determined in a freely floating r..

  Consider market where supply and demand

Consider a market where supply and demand are given by QXS = -16 + PX and QXd = 83 - 2PX. Suppose the government imposes a price floor of $36, and agrees to purchase any and all units consumers do not buy at the floor price of $36 per unit

  Required to meet in order to ensure product safety

Many legal standards exist that businesses are required to meet in order to ensure product safety. These standards tend to be well defined, and adherence is a generally accepted risk mitigation strategy. Less quantitative risks exist, often in the ar..

  Compute the monthly rate of inventory growth in the global

compute the monthly rate of inventory growth in the global aluminum market using the given demand and supply equations for the world aluminum market.

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd