Rent controls are a typical example of a price ceiling.Please select all likely consequences of rent controls when the price ceiling is binding.inefficient allocation of apartmentsmore subletting of apartmentsblack marketsreductions in apartment quality

answer:- •Inefficient allocation ,of apartment •More subleting of apartment •Black market…

Answered: Rent controls are a typical example of…

Exploring Economics

8th Edition

ISBN:9781544336329

Author:Robert L. Sexton

Publisher:Robert L. Sexton

Chapter5: Markets In Motion And Price Controls

Section: Chapter Questions

Problem 6P

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Similar questions

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a) In the market for sugary drinks, the current equilibrium price is $10 and the equilibrium quantity is 30. The demand choke price is $50 and the supply choke price is $5 (a) Draw a demand and supply diagram, and shade the regions that represent consumer and producer welfare. Calculate the Total welfare in this market b) In this market, you now know that E D = −0.4 and E S = 1.2. Redraw your diagram in part (a) with the correct sloping curves. In this part you do not have to shade the welfare regions. All you need to do is redraw the diagram with the same equilibrium price and quantity, and choke prices but adjust the slope of each curve to reflect their respective elasticity c) If a tax was to be implemented in this market, what percentage of the burden is borne by the buyer? d) The government plans to discourage the consumption of sugary drinks and as such, they implemented a $1 tax on every bottle produced. In this situation, the suppliers are taxed directly but they hope to pass…
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The demand and supply schedules for gatorade is as follows: Price (Gallons) Quantity Supplied $90 888888 80 70 60 50 40 Quantity Demanded 20 88888 25 30 35 40 55 65 339*** 55 45 35 25 15 What is the equilibrium price of gatorade? What is the equilibrium quantity? The city of Fayetteville is worried about the effectiveness of gatorade in thirst quenching young adults. They set a price floor $20 above equilibrium. How much gatorade is sold? in? Thirsty young adults seekers protest to the decision so the city imposes a price calling $10 lower than the price floor from the previous question. How much gatorade is sold? What effect does this result

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Rent controls are a typical example of a price ceiling. Please select all likely consequences of rent controls when the price ceiling is binding. inefficient allocation of apartments more subletting of apartments I black markets reductions in apartment quality