Question

- Suppose demand for apartments in Honolulu is P=6600-0.5q and supply is P=0.25q. Derive the equilibrium price and quantity for apartments. Show on a graph. Calculate the producer and consumer surplus. If the city of Honolulu passes a rent control, forcing a rent (or price) ceiling equal to $1800, what is the quantity supplied, quantity demanded, and the shortage? Calculate the new consumer surplus, producer surplus, and deadweight loss, and show these on your graph. If a black market develops after the rent control, allowing landlords to charge an illegal rent, what is the highest rent that they could charge for the quantity supplied of apartments in part b? What is the new producer surplus? Comment on the effectiveness of price controls in allocating apartments to middle to lower income tenants.

Answer #1

Suppose demand for apartments in Honolulu is P=6000-0.5q and
supply is P=0.25q.
a. Derive the equilibrium price and quantity for apartments.
Show on a graph. Calculate the producer and consumer surplus.
b. If the city of Honolulu passes a rent control, forcing a rent
(or price) ceiling equal to $1600, what is the quantity supplied,
quantity demanded, and the shortage? Calculate the new consumer
surplus, producer surplus, and deadweight loss, and show these on
your graph.
c. If a black...

Demand for Dok P=60-0.5Q
supply P=12+0,5Q
1.what is the equilibrium price, quantity, consumer surplus and
producer surplus.
2.suppose the demand curve increases by 12 unit at given price.
Hold everything constant, what is new equilibrium price, quantity,
consumer surplus and producer surplus.
3.use the original demand and supply curve in part one. assume
economy can trade with world for 12 unit. What is the market price
for local consumers if the world price is 24. What is price local
producer...

demands for necklace is given by P=90- 0.25Q and supply of
necklace is given by P= 10+ 0.15Q
draw the graph and show if if there is price ceiling at 30 what
will be consumer surplus and producer surplus

A monopoly is facing inverse demand given by P = 40−0.5Q and
marginal cost given by MC = 7+0.1Q. Illustrate these on the graph
and answer the questions below.
(a) If the monopolist is unable to price discriminate, what is
the profit-maximizing quantity? What is the price? What is consumer
surplus? Producer surplus? Deadweight loss?
(b) Suppose instead the monopolist is able to perfectly price
discriminate. How many units will be sold? What is consumer
surplus? Producer surplus? Deadweight loss?

2. The demand and supply functions for rental accommodation in
Metroland are as follows:
Qd =120-P
Qs = 2P
a. Solve for the competitive equilibrium rental rate
(P) and quantity (Q) of rental units in
Metroland. Illustrate this equilibrium in a graph.
On your graph, show the regions that represent consumer surplus
and producer surplus. Calculate the value of consumer surplus,
producer surplus, and overall welfare.
b. Suppose the City of Metroland enacts a rent control ordinance
that imposes a...

The demand and supply functions for rental accommodation in New
York are as
follows:
Qd = 120 - P
Qs = 2P
a. Solve for the competitive equilibrium rental rate (P) and
quantity (Q) of rental units
in New York. Illustrate this equilibrium in a graph.
b. On your graph, show the regions that represent consumer surplus
and producer
surplus. Calculate the value of consumer surplus, producer surplus,
and overall
welfare.
c. Suppose the City of New York enacts a...

2. The demand and supply functions for rental accommodation in
Metroland are as follows: Qd = 120 - P Qs = 2P a. Solve for the
competitive equilibrium rental rate (P) and quantity (Q) of rental
units in Metroland. Illustrate this equilibrium in a graph. b. On
your graph, show the regions that represent consumer surplus and
producer surplus. Calculate the value of consumer surplus, producer
surplus, and overall welfare. c. Suppose the City of Metroland
enacts a rent control...

The demand for sunglasses is given by D(p) = 100 − 2 p and the
supply curve is given by S(p) =3p
(a) Compute the equilibrium price and equilibrium quantity of
sunglasses.
(b) Sketch both the demand and supply curves on the same graph
(be sure to label your axes correctly).
(c) Determine the value of consumer surplus and producer surplus
at the equilibrium values. Suppose all sunglasses are imported from
China. Suppose also that the government imposes an import...

Suppose that the supply curve for housing in an American sunbelt
megacity is:
P = 0.125 Q
where P is the price per month per
bedroom of an attractive central location, and Q is the number of
bedrooms—the number of people—in millions. (People in less
attractive locations get a discount, and people who own rather than
rent have a more complicated problem. But for simplicity assume
that we can represent this whole market by just one supply curve
and one...

Suppose in Diamond Land people mine diamonds, and you have a
demand and supply curve for diamonds, where P is the price of
diamonds and Q is the quantity demanded for diamonds (in
pounds):
P=300-0.5Q
P=100+0.5Q
Please find the equilibrium price and quantity for diamonds.
Please graph supply and demand curves and show the equilibrium
price and quantity demanded on the graph. Please also label the
axes, intercepts, and curves.
Suppose the government of Diamond Land wants to implement price...

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