What are the possible negative effects due to price ceiling

Assignment Help Microeconomics
Reference no: EM13762668

Question 1:

Use supply and demand analysis to show the effect of a (binding) price ceiling in the market for rental properties.

  • What are the possible negative effects due to this price ceiling?
  • What happens to the total surplus (total surplus = consumers' surplus + producers' surplus)?
  • Why do governments use price ceilings despite these negative effects?
  • Who might benefit from this price ceiling?

Question 2:

Explain the different outcomes between perfect competition and monopoly ("regular" monopoly). 

Use a single graph to illustrate this difference.

  • Please talk about ALL relevant differences between the two market structures including, but not limited to, basic assumptions, equilibrium quantity, equilibrium price, consumers', producers', and total surplus, etc.

Reference no: EM13762668

Questions Cloud

Practice of accounting and its uses in business : Discuss the objectives for Week Five. How do they relate to the practice of accounting and its uses in business?
Problem related to the cloud effect : Many firms are relying on cloud computing, also known as "the cloud," to perform key business functions. By moving transactional processing to the cloud, firms are exposing themselves to additional attacks as well as to tighter scrutiny from regul..
Discuss tips for families of children with special needs : Identify ways for children with special needs to stay safe and healthy. Discuss tips for families of children with special needs.
Identify a non-global companya select a market entry strateg : Identify a non-global company, select a market entry strategy and create a 3-4 page description of how you would enter a specific global market using your chosen entry strategy.
What are the possible negative effects due to price ceiling : What are the possible negative effects due to price ceiling and what happens to the total surplus (total surplus = consumers' surplus + producers' surplus)?
What kinds of diet modifications might a child require : How might the eating skills of a child with special needs vary from other children? How would you react or help the child? What kinds of diet and mealtime modifications might a child with special needs require? Why?
Problem related to securing data : In this global age of information, suggest which threats are posed to the principles of confidentiality and privacy, related to offshore outsourcing of various information systems functions. Provide support for your rationale.
The developments in material science : New materials often lead to new technologies that change society.
Significant investment in financial and non-financial : In today's technology environment, hackers present a substantial risk to a firm's accounting or business system. As the result of these attacks, firms suffer huge losses, ranging from financial losses to losses in confidence by consumers, creditor..

Reviews

Write a Review

 

Microeconomics Questions & Answers

  Cause of the aggregate demand curve to shift to the right

Assume that the market for Mexican pesos begin in equilibrium. Then, the Mexican economy experiences a severe recession. Because of the recession, the Mexican companies lower their prices. As a result of the recession and lower prices in Mexico.

  Hypothesis of supplier induced demand

Is the existence of higher fees in areas with a larger physician/patient ratio sufficient evidence to support the hypothesis of supplier induced demand?

  The federal government announced a tax rebate

The Federal Government announced a tax rebate of $500 for all  individuals filing singly

  Find a market price for hydrogen gas and normalize energy

Find a market price for hydrogen gas and normalize the energy content compared to the current local price of gasoline. Using octane as an approximation for gasoline energy content, compare the cost per kilojoule of energy of hydrogen to gasoline.

  How monopolist will try to buy the competitor

Even though both monopolists and competitive firms follow the MC = MR rule in maximizing profits, there are differences in the economic outcomes because the pure competitor cannot make any economic profit.

  When the allocatively efficent output level is produced

Apply the formula for the area of a triangle (Area= 1/2 x Base x Height ). What is the dollar value of the total surplus ( producer surplus plus consumer surplus) when the allocatively efficent output level is produced

  Invested in human capital-the acquired skills of individual

How does the market reward those who have invested in human capital-the acquired skills of an individual in the areas of education, training, and work habits? Cite specific examples from your community to support your answer.

  Indifference curve-budget line analysis

Use an indifference curve-budget line analysis to depict the situations, prior to the ban on smoking, of a student who smoked on campus, and of a student who did not smoke.

  Calculate the firm''s average variable cost

Microsoft Word - Problem Set 9 Consider a competitive firm with the following short-run cost function: c(y) = 3y^2 - 16y + 30 A) Calculate the firm's average variable cost

  Distinguish between explicit and implicit costs

Distinguish between explicit & implicit costs, giving example of each and what are the explicit & implicit costs of attending college?? Why does the economist classify normal profit as a cost?

  What is the autarky or no trade price of motorbikes

U.S. : P = 8 - 1/10 QD P = 4 + 1/10 QS (or, QD = 80 - 10 P and QS = -40 + 10 P)ROW: P = 8 - 1/10 QD P = 2 + 1/10 QS (or, QD = 80 - 10 P and QS = -20 + 10 P)What is the autarky or no trade price of motorbikes in the U.S.?

  Define business cycles

Define business cycles? Discuss how business cycles play an important role in managerial decisions.

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