SENTER The equilibrium rent in a town is $500 per month, and the equilibrium number of apartments is 100. The city now passes a rent control law that sets the maximum rent at $400. The diagram on the right summarizes the supply and demand for apartments in this city. Use this figure to complete the tables below. (enter your answers mathematically as the sum of the areas E.g., A+C-B. Simplify your answers.) Before Rent Control TABLE 1: Consumer Surplus Producer Surplus Social Surplus Price 500 400 A C F 60 B D 100 Quantity G

SENTER The equilibrium rent in a town is $500 per month, and the equilibrium number of apartments is 100. The city now passes a rent control law that sets the maximum rent at $400. The diagram on the right summarizes the supply and demand for apartments in this city. Use this figure to complete the tables below. (enter your answers mathematically as the sum of the areas E.g., A+C-B. Simplify your answers.) Before Rent Control TABLE 1: Consumer Surplus Producer Surplus Social Surplus Price 500 400 A C F 60 B D 100 Quantity G

Microeconomics: Principles & Policy

14th Edition

ISBN:9781337794992

Author:William J. Baumol, Alan S. Blinder, John L. Solow

Publisher:William J. Baumol, Alan S. Blinder, John L. Solow

Chapter18: Pricing The Factors Of Production

Section: Chapter Questions

Problem 4TY

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Suppose that the demand and supply schedules for rental apartments in the city of Gotham are as given in the following table. Apartments Demanded Apartments Supplied 15,000 12,500 10,000 7,500 5,000 Monthly Rent $2,500 2,000 10,000 12,500 15,000 1,500 1,000 500 17,500 20,000 Instructions: Enter your answers as a whole number. a. What is the market equilibrium rental price per month and the market equilibrium number of apartments demanded and supplied? Market equilibrium rental price = $ Market equilibrium quantity = apartments b. If the local government can enforce a rent-control law that sets the maximum monthly rent at $1,500, will there be a surplus or a shortage? (Click to select) ♥ Of how many units? apartments per month How many units will actually be rented each month? apartments c. Suppose that a new government is elected that wants to keep out the poor. It declares that the minimum rent that landlords can charge is $2,500 per month. If the government can enforce that price…
Suppose that the demand and supply schedules for rental apartments in the city of Gotham are as given in the following table. Monthly Rent $ 2,500 2,000 1,500 1,000 500 Apartments Demanded 12,500 15,000 17,500 20,000 22,500 Apartments Supplied 17,500 15,000 12,500 10,000 7,500 Instructions: Enter your answers as a whole number. a. What is the market equilibrium rental price per month and the market equilibrium number of apartments demanded and supplied? Market equilibrium rental price = $ Market equilibrium quantity= apartments b. If the local government can enforce a rent-control law that sets the maximum monthly rent at $1,500, will there be a surplus or a shortage? (Click to select) Of how many units? |apartments per month How many units will actually be rented each month? |apartments c. Suppose that a new government is elected that wants to keep out the poor. It declares that the minimum rent that landlords can charge is $2,500 per month. If the government can enforce that price…
Suppose that the demand and supply schedules for rental apartments in the city of Gotham are as given in the following table. Monthly Rent Apartments Demanded Apartments Supplied $ 2,500 10,000 15,000 $ 2,000 12,500 12,500 $ 1,500 15,000 10,000 $ 1,000 17,500 7,500 $ 500 20,000 5,000 a. What is the market equilibrium rental price per month and the market equilibrium number of apartments demanded and supplied? Market equilibrium rental price = $ Market equilibrium quantity = apartments I have no idea how to solve this problem
The following graph shows the monthly demand and supply curves in the market for combs. Use the graph input tool to help you answer the following questions. You will not be graded on any changes you make to this graph. Note: Once you enter a value in a white field, the graph and any corresponding amounts in each grey field will change accordingly. PRICE (Dollars per comb) 80 72 64 8 0 Supply The equilibrium price in this market is $ Demand 0 50 100 150 200 250 300 350 400 450 500 QUANTITY (Combs) + 1 Price (Dollars per comb) Shortage or Surplus 32 48 Graph Input Tool Market for Combs Price (Dollars per comb) Quantity Demanded (Combs) per comb, and the equilibrium quantity is 24 Shortage or Surplus Amount (Combs) 500 Quantity Supplied (Combs) combs per month. Complete the following table by indicating at each price whether there is a shortage or surplus in the market, the amount of that shortage or surplus, and whether this places upward or downward pressure on prices. Pressure (?) 150
Is The following graph plots the supply and demand curves in the market for VR headsets. Use the black point (plus symbol) to indicate the equilibrium price and quantity of VR headsets. Then use the green point (triangle symbol) to fill the area representing consumer surplus, and use the purple point (diamond symbol) to fill the area representing producer surplus. PRICE (Dollars per headset) 400 300 320 200 240 200 160 120 BO 40 0 0 Demand Supply 75 400 525 600 676 750 150 225 300 375 QUANTITY (Millions of headsets) Total surplus in this market is $ million, Equilibrium A Consumer Surplus ◊ Producer Surplus Bas & Pant course 0x
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The market demand for productXis given by: \[ Q_{d}=6-1 / 2 P \text { or } P d=12-2 Q \] The market supply for goodXis given by: \[ Q_{s}=-14+2 P \text { or } P s=7+1 / 2 Q \] whereP=price per unit andQis number of units. Draw a supply-and-demand graph with these curves. 1.) Using the line drawing tool, draw the supply and demand curves. Properly label your lines. 2.) Using the point drawing tool, plot the equilibrium point. Label your point 'E'. Note: Carefully follow the instructions above and only draw the required objects. The equilibrium price is$and the equilibrium quantity is unit(s). (Enter your responses as integers.) A per-unit excise tax is imposed on suppliers of productX, and the market supply with the tax is now given by: \[ Q_{s}=-19+2 P \text { or } P s=9.50+1 / 2 Q \] Using the graph on the right, show this supply curve. 1.) Using the line drawing tool, draw the new supply curve. Label your line 'S1+tax'.1. Note: Carefully follow the instructions above and only draw…
Question#4Given below is the Supply Schedule of Nestle Milk per liter: Price of Milk per liter (in Rs) 100 200 300 400Quantity Supplied per day in liters (in 1000s) 100 200 300 400 A) Use the above data to illustrate the Supply Curve in a graph with complete labels.B) Assume Rs. 200 is the original price of milk per liter and 200,000 liters is the original quantity of supply.C) Suppose the price rises from Rs. 200 to Rs. 300, what will be the amount of Quantity Supplied?D) Illustrates the impact of (C) on the graph.E) Is this a movement along the supply curve or shift of the curve?
Question#4Given below is the Supply Schedule of Nestle Milk per liter: Price of Milk per liter (in Rs) 100 200 300 400Quantity Supplied per day in liters (in 1000s) 100 200 300 400 A) Use above data to illustrate the Supply Curve in a graph with complete labels.B) Assume Rs. 200 is the original price of milk per liter and 200,000 liters is the original quantity of supply.C) Suppose the price rises from Rs. 200 to Rs. 300, what will be the amount of Quantity Supplied?D) Illustrate the impact of (C) on the graph.E) Is this a movement along the supply curve or shift of the curve?
The following graph shows the monthly demand and supply curves in the market for kettles. Use the graph input tool to help you answer the following questions. You will not be graded on any changes you make to this graph. Note: Once you enter a value in a white field, the graph and any corresponding amounts in each grey field will change accordingly. PRICE (Dollars per kettle) 100 90 80 70 60 50 40 30 20 10 0 0 Supply The equilibrium price in this market is $ Demand 50 100 150 200 250 300 350 400 450 500 QUANTITY (Kettles) Graph Input Tool Market for Kettles Price (Dollars per kettle) Shortage or Surplus 60 40 Price (Dollars per kettle) Quantity Demanded (Kettles) per kettle, and the equilibrium quantity is 30 Shortage or Surplus Amount (Kettles) 500 Quantity Supplied (Kettles) kettles per month. Complete the following table by indicating at each price whether there is a shortage or surplus in the market, the amount of that shortage or surplus, and whether this places upward or downward…
Suppose the demand curve for a product is given by MB = 100 - Q and the supply curve for a product is given by MC = 0.25Q, where Q is the quantity demanded/supplied in tons and MB and MC are, respectively, marginal benefit and marginal cost both expressed in US$. Use a graph to help answer the following questions and fill in your final answers in the spaces below. What is the equilibrium quantity? Q* = tons What is the equilibrium price? P* = $ What is the consumer surplus at the equilibrium quantity? CS = $ What is the producer surplus at the equilibrium quantity? PS = $
can you help me with thia qustion Doug William, the owner of a corner store, estimates that the supply and demand for a specialized energy drinkcould be described by the following equations D : q=−25 p+345 , S : q=50 p−330,where p represents the price in dollars per case (each case contains 12 bottles), and q represents the number ofcases sold each week (a) Determine the market equilibrium price and quantity.