Read the NYT article "The Perverse Effects of Rent Regulation" (7/23/13). Brainstorm the pros and cons of rent control laws. Explain why this issue illustrates a trade-off between efficiency and equity (fairness). How do rent control laws cause the “market to strike back”?
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Hello! I did ask for help a moment ago, but the expert was not able to helped me because say I'm asking for help using the site. This is the information I provided: Hello, I need help to answer these questions. (The class is Read the NYT article "The Perverse Effects of Rent Regulation" (7/23/13). Brainstorm the pros and cons of rent control laws. Explain why this issue illustrates a trade-off between efficiency and equity (fairness). How do rent control laws cause the “market to strike back”? Below is the link of the article https://www.nytimes.com/2013/07/28/magazine/the-perverse-effects-of-rent-regulation.html Thank you! |
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- Suppose the following graph shows the demand for, and supply of, apartments in New York City. Use the black point (plus symbol) to indicate the equilibrium monthly rent and quantity of apartments in the absence of price controls. Then use the green point (triangle symbol) to fill the area representing consumers' surplus, and use the purple point (diamond symbol) to fill the area representing producers' surplus. MONTHLY RENT (Dollars per apartment) 2800 2600 2400 2200 2000 1800 0 Demand Supply 0.8 3.2 QUANTITY OF APARTMENTS (Millions per month) 1.6 2.4 4.0 Equilibrium A CS PS ?City A and City B are on the opposite sides of the River. Suppose A imposes rent controls. With the use of diagrams explain what effect these controls will have upon the housing markets in A and B City?the cities of Woburn and Peabody are five miles apart. Woburn enacts a rent control law that puts a ceiling on rents well below their competitive market value. Predict the impact of this law on the competitive equilibrium rent in Peabody, which doesn't have a rent control law. Illustrate your answer with a demand and supply graph
- Suppose Raleigh decides to adopt rent controls that end up reducing the rates landlords can charge below equilibrium rates. Which of the following is a likely consequence? Select one: A.Some landlords will convert rental housing units to other uses, thereby reducing the number of rental housing units available B.At lower rents, more NC State students will prefer living off campus as opposed to living in a dorm C.There will be a shortage of rental units in Raleigh D.All of the these answers are correctWhat does rent control do to the pricing and supply of apartment, units? According to the Wall Street Journal, "Rent control disproportionately subsidizes the affluent. A Harvard University study in the late 1980s found that rent-controlled apartments were in some of the city's best neighborhoods, that 94% of their tenants were white, and roughly three-quarters of their occupants were families without children." Do you think NYC should maintain rent control?a. Tattoo artists are required to be licensed. Use a graph to show how a licensing requirement impacts the market for tattoo artists. Show the market equilibrium if there are no license requirements and also show the market equilibrium with license requirements. What happens to consumer surplus, producer surplus, and deadweight loss when licenses are required? b. Explain who wins and who loses from licensing regulation? Who pays for the licensing? Explain briefly. c. Use a graph of the tattoo market to show this positive effect. Show the market equilibrium on your graph and explain how this market equilibrium compares to the market equilibrium in which this benefit is not taken into account. e. Does licensing perform a better job of solving the asymmetric information problem than yelp or google reviews? i.e. does licensing provide a better signal of quality compared to other signals of quality such as online reviews? Explain why or why not.
- Read the following article: https://techcrunch.com/2021/02/12/will-ride-hailing-profits-ever-come/ then answer the following questions. 1. The article notes Uber had never been profitable, yet at the time Uber had a market cap above $90 billion. What gives? 2. Uber lost approximately $7 billion in accounting profits in 2020. Is Uber’s producer surplus above or below this amount? Is Uber's economic profit above or below this amount? Explain.…The graph illustrates a market for rented housing. What is a rent ceiling? A rent ceiling is a regulation that makes it illegal to A. offer more than a specified quantity of a good or service for sale B. offer less than a specified quantity of a good or service for sale C. charge a rent higher than a specified level D. charge a rent below a specified level In the graph, draw a line that illustrates an effective rent ceiling. Label it. G 1200- 1000- 800- 600- 400- 200- to 0 Rent (dollars per unit per month) Question Viewer 100 150 200 250 Quantity (thousands of units) >>> Draw only the objects specified in the question. S 50 D 300 Q5. How Rent Control Causes Inefficiency Suppose the following graph shows the demand for and supply of flats in a country. Determine the equilibrium monthly rent and quantity of flats in the absence of price controls. Based on this, use the green triangle (triangle symbols) to shade the area representing consumer surplus at the equilibrium rent. Then use the purple triangle (diamond symbols) to shade the area representing producer surplus at the equilibrium rent.
- Read the following excerpt: 'In the UK, fuel duty is levied per unit of fuel purchased and is included in the price paid for petrol, diesel and other fuels used in vehicles or for heating. The rate depends on the type of fuel: the headline rate on standard petrol and diesel has been reduced from 57.95 pence to 52.95 pence per litre.' Suppose that, in order to reduce greenhouse gas emissions, the UK government is considering raising fuel duty on standard petrol and diesel. Suppose that the government intends to earmark the additional fuel tax revenue, not for subsidising less carbon-intensive energy production (e.g., wind energy) but for supporting higher education (e.g., reduction in university fees). Are there additional theoretical implications in terms of efficiency in resource allocation, due to the intended use of the revenue? Explain.Alain Bertaud uses the example of Paris to explain how regulations can distort land prices. What is the regulation used in Paris and how did this impact the residential housing market in Paris?Proverbs 16:11 and 20:10 as well as other verses warn against unfair weights and measures. Are modern price controls such as ceiling and floors, similar? Why or why not?