Business, 11.12.2019 20:31 Jessietorres2123

The elected officials in a west coast university town are concerned about the "exploitative" rents being charged
to college students. the town council is contemplating the imposition of a $350 per month rent ceiling on
apartments in the city. an economist at the university estimates the demand and supply curves as: qd = 5600 - 8p qs = 500 + 4p, where p = monthly rent, and q = number of apartments available for rent. for purposes of this analysis, apartments can be treated as identical.
a . calculate the equilibrium price and quantity that would prevail without the
price ceiling. calculate producer and consumer surplus at this equilibrium
(sketch a diagram showing both). b. what quantity will eventually be available if the rent ceiling is imposed?
calculate any gains or losses in consumer and/or producer surplus. c. does the proposed rent ceiling result in net welfare gains? would you advise
the town council to implement the policy?

Answers: 3

Show answers

Another question on Business

Business, 22.06.2019 02:00

Greater concern for innovation and quality has shifted the job trend to using more broadly defined jobs. t/f

Answers: 1

Answer

Business, 22.06.2019 04:50

Problem 9-5. net present value and taxes [lo 1, 2] penguin productions is evaluating a film project. the president of penguin estimates that the film will cost $20,000,000 to produce. in its first year, the film is expected to generate $16,500,000 in net revenue, after which the film will be released to video. video is expected to generate $10,000,000 in net revenue in its first year, $2,500,000 in its second year, and $1,000,000 in its third year. for tax purposes, amortization of the cost of the film will be $12,000,000 in year 1 and $8,000,000 in year 2. the company’s tax rate is 35 percent, and the company requires a 12 percent rate of return on its films. required what is the net present value of the film project? to simplify, assume that all outlays to produce the film occur at time 0. should the company produce the film?

Answers: 2

Answer

Business, 22.06.2019 16:00

Winners of the georgia lotto drawing are given the choice of receiving the winning amount divided equally over 2121 years or as a lump-sum cash option amount. the cash option amount is determined by discounting the annual winning payment at 88% over 2121 years. this week the lottery is worth $1616 million to a single winner. what would the cash option payout be?

Answers: 3

Answer

Business, 22.06.2019 16:40

Differentiate between the trait, behavioral, and results-based performance appraisal systems, providing an example where each would be most applicable.

Answers: 1

Answer

You know the right answer?

The elected officials in a west coast university town are concerned about the "exploitative" rents b...

Questions