Market effects of rent control strategy

Assignment Help Business Management
Reference no: EM131437916

A large city in the Eastern US is plagued with higher and higher rents. The average rent in the largest rental neighborhood is $2,000 per month. This neighborhood largely serves new residents to the city, mostly immigrants. Most of these residents cannot afford these rents, so the local government has determined that it will initiate a "price ceiling" or "rent control ceiling" at $1500. In other words, there are to be no rents above $1500 in this neighborhood. Given this information, answer the following questions:

Explain the likely market effects of this rent control strategy, using illustrative supply and demand curves with the numbers mentioned above.

Do you anticipate a surplus or shortage of rental housing in this neighborhood? Explain your response.

Longer term, will landlords be motivated to maintain quality housing in this neighborhood?

What may happen to the quality of the entire neighborhood over the long term if rent control is maintained for years to come? Explain.

Reference no: EM131437916

Questions Cloud

Governments about the renminbi exchange rate : What are the different arguments used by the US and Chinese governments about the renminbi's exchange rate? Do you think that the renminbi is undervalued against the U.S. dollar?
Consider an economy with two goods : Consider an economy with two goods. food (F) and music (M). The price of M is 4. The price of F is 4. Carol has an income of 500 and her preferences are represented by the utility function in A.
Various costs per hour for producing the units : The firm's engineer has set up "assembly cells" in the facility that she believes will be the most efficient means of producing the units. The following table displays the various costs per hour for producing the units.
Explain the concept of a market externality : Explain the concept of a market externality. Cite two examples of market externalities and how they create societal costs that are not necessarily captured in their respective transaction costs.
Market effects of rent control strategy : Explain the likely market effects of this rent control strategy, using illustrative supply and demand curves with the numbers mentioned above. Do you anticipate a surplus or shortage of rental housing in this neighborhood? Explain your response.
Determine the minimum price for the basic service : The business's fixed costs total £660,000 a year. Each service takes about the same length of time, irrespective of the level. One of the accounts staff has just produced a report that seems to show that the standard service is unprofitable.
Recognize potential security breaches and computer crimes : Assess how these two organizations use information technology for competitive advantage. Appraise the individual and organizational consequences of the use of information technology, and recognize potential security breaches and computer crimes.
Developing value-adding implementation strategies : The prime focus of this module is to develop understanding and capacity of how implementation strategies within the service delivery and support activities of the John Hopkins Hospital Value Chain are required to be developed taking into consideratio..
Seasonal differences in demand for ice cream : Are there certain seasonal differences in demand for ice cream that could taint the price elasticity analysis?  Explain. Is there potential for a tainted study because of changes in external variables over the course of the year?  For example, its m..

Reviews

Write a Review

Business Management Questions & Answers

  What was the owners inspiration in starting the business

What was the owners inspiration in starting the business and job Safety and Health Protection Poster - Fair Work Act Poster

  Web site with an unsigned public key

Explain the risks involved with using SSL where the server's public key is signed and where the server's public key is not signed. Include examples where risk is too high and where the risk is probably not too high. In your description, be sure to..

  Explain how can the industry develop consumer intimacy

Identifies Wal-Mart's Tiers of non-consumers, as well as explain how the product offers exceptional utility also where it fails to do so. Armed with this information, explain how can the industry develop consumer intimacy.

  Describe the company strategic planning

Describe the company's strategic planning. Describe the quality system of the company (ISO 9000, Six Sigma, etc.) Describe the company's human resource development and management

  Show advantages and disadvantages of data auditing

What would be the advantages and disadvantages of data auditing and how would these advantages and disadvantages affect stakeholders in the organization?

  Evaluate the document according

Select a document, such as an article from a Web site, newspaper,magazine, or a piece of writing you have completed for a course. Evaluate the document according to the four main categories (The four main categories-content, organization, style, a..

  Federal government use the commerce clause

Could the federal government use the Commerce Clause from Article I, of the U.S. Constitution, to apply the ADA to Tiffany's restaurant and force her to widen her doors or be subject to fines and/or jail? Why or why not?

  Advantages and disadvantages of binary search tree structure

Explain the advantages and disadvantages of binary search tree structures. Discuss ways to quantify performance.

  Develop a list of best practices being used by businesses

Develop a list of best practices being used by businesses in chosen industry to address the identified regulatory issues. How these best practices could be applied to solve a specific problem for another student's employer.

  Director of student affairs at a small liberal arts college

Imagine that you are the director of student affairs at a small liberal arts college in the Midwest. During a staff meeting, the president of the college shares a number of complaints.

  Important aspects of company financial health

From the e-Activity, choose at least three (3) key ratios that, in your opinion, reflect the most important aspects of the chosen company's financial health. Provide a rationale for your opinion.

  Purpose and importance of epa and fdaas we discover that

purpose and importance of epa and fdaas we discover that our own self-interest is highly important in making sound

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