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Case study: rent ceilings in New York City. Suppose the demand and supply curves for rental housing units have the typical shapes and that the rental housing market is in equilibrium. Then, government establishes a rent ceiling below the equilibrium level.
A. What happens to the quantity of housing available?
B. What happens to the quality of housing and why?
C. Who benefits from rent control?
D. Who loses from rent control?
E. How do landlords of rent-controlled apartments try to get tenants to leave?
Suppose there are two airlines, each one runs one flight a day to Chicago. Delta runs one at 8AM and United runs one at 6PM. There are 100 people whose preferences are evenly distributed between 8AM and 6PM. Each consumer values the flight at $300..
Calculate the growth rate of real GDP for each year from 1994 to 1997 and calculate the average annual growth rate of real GDP for the period from 1994 to 1997.
All workers are equally productive also workers vary in their preferences. Compute a worker who values his wage and the risk level according to the following utility functions
Compute the employment rate and the level of productivity for each year and for each five-year period, compute the percentage change in the labour force, the employment rate and the level of productivity
There is a supply and a demand for most goods. The result is a market clearing equilibrium price. Firms many times supply a certain amount of the hot or must have product to the market.
If the MPC = 0.94, C 0 = 45, I = 150, G = 125, T = 75, X = 50 & IM = 60: Write out the consumption function. Compute the simple multiplier.
Optimal consumption. The following Table describes the demand for tickets to the opera, during the two=-week season.
Suppose the externality/public good aspects of weather forecasts and argue for or against such a "privatization" of weather forecasting.
Explain why government regulation is needed, citing the major reasons for government Involvement in a market economy and justify the rationale for the intervention of government in the market process in the U.S.
Describe the factor which determine the slope of the LM curve and whether an increase in theses factor(s) will make the curve flatter or steeper.
What are the pros and corns of a market economy in comparison with a command economy.
When 50 employees are used, the average product of labor is 50 and the marginal product of 50th worker is 75.
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