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Rent controls force landlords to price apartments below the equilibrium price level. An immediate effect is a shortage (excess demand) of apartments, because the quantity of apartments demanded is greater than the quantity supplied at the regulated price. When cities prevent landlords from charging market rents, which of the following are common long-run outcomes? Check all that apply. Black markets develop. Landlords earn lower profits from renting housing units, but the rent charged has no effect on either the quantity or quality of rental units. The quality of rental housing units falls. Efficient use of housing space results.
Using economic analysis and the guiding principles of sustainability, between the farmer subsidy solution and the principles of sustainability solution, justify which solution is best? Why?
Suppose the market for cigarettes is characterized by the following information : Suppose the government impose a sales tax of $2 per unit. Calculate the Dead-Weight-Loss due to the sales tax.
q.a firm is considering two business projects. project a will return a loss of 45 if conditions are poor a profit of 35
Specify the product as luxury or necessity - Specify price elasticity of demand for the product as elastic or inelastic. Briefly explain why.
Consider the following: “In 1973 several major oil producing countries formed a cartel. The cartel effectively decreased the supply of crude oil. Gasoline prices rose sharply as did the total expenditures on gasoline.” Use a supply/demand diagram of ..
Agriculture and Agri-Food Canada implemented a farm savings plan called AgriInvest that would help farmers navigate shallow losses (differences between revenues and expenses that are not extreme). What is the rate of return (on the first 22,500 contr..
How could such a policy create challenges for trading partner relationships? What are the trade war possibilities? What would you propose if you were in Congress
Home produced 450 bushels of pears also 1050 cellular phones. This year it produced 450 bushels of pears also 2000 cellular phone.
Suppose that the cost of eradicating polio from a society of 1,000 persons is $5 per person. Also suppose that only two persons in that society will benefit from that policy, and the benefit to each of those persons is $2,000. Then what is the social..
Calculate the APP, MPP and elasticity of production at different production levels and how many stages of production does this function represent? Mention them.
Please explain “opportunity cost” and give three examples from your own life. Please include and identify both “explicit” and “implicit” costs in your examples.
Identify changes in market conditions and their effect on equilibrium price and quantity for the following events:
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