The market demand and supply for Ithaca farmland is given by the following functions: Qd = 10,000 - 10P, and Qs = 6P, where: Qd is quantity demanded and Qs is quantity supplied, and P is the rental price of land per month. The Mayor and the County Executive are proposing separate rent control measures. The Mayor wants to prohibit land owners from charging farmers more than $550 per month to rent farmland. The County Executive wants to prohibit landowners from charging more than $700 per month. Based on the above information, answer the following questions: (a) Calculate the equilibrium

The market demand and supply for Ithaca farmland is given by the following functions: Qd = 10,000 - 10P, and Qs = 6P, where: Qd is quantity demanded and Qs is quantity supplied, and P is the rental price of land per month. The Mayor and the County Executive are proposing separate rent control measures. The Mayor wants to prohibit land owners from charging farmers more than $550 per month to rent farmland. The County Executive wants to prohibit landowners from charging more than $700 per month. Based on the above information, answer the following questions: (a) Calculate the equilibrium

Economics:

10th Edition

ISBN:9781285859460

Author:BOYES, William

Publisher:BOYES, William

Chapter32: The Land Market And Natural Resources

Section: Chapter Questions

Problem 11E

See similar textbooks

Similar questions

Question #3. Assume that crop rent gradients for three different crops are a function of crop type and soil fertility. The rent gradient for broccoli is -.02r+3. The rent gradient for spinach is -.005r+2 and the rent gradient for wheat is -.00167r+1. Given a farm with 600 acres, how many acres would be planted with each crop? How would this change if the government decides to subsidize spinach production by $0.50—shifting the curve out by $0.50?
The market demand and supply for renting apartments in the Midrand area is given as: Demand: p = 12 000 - 5Qd Supply: p = 800 + 3Qs 5. What is the landlord’s total revenue at the equilibrium price? [1] R7 000 000.[2] R12 000 000.[3] R8 000 000.[4] R1 400 000. 6. If the government implements an effective rent ceiling of R4 100 in the Midrand area, what are the search costs? [1] R0.[2] 2 640 000.[3] 1 320 000.[4] 72 000. 7. What price will the customers be willing to pay on the black market? [1] R5 000.[2] R4 100.[3] R6 500.[4] R1 400.
1. The rental market in a town is considering a rent control law. If implemented, this law would lower all rents in the town to $400 per month. Suppose all rentable properties in this town are alike, the current market clearing rent is $500 per month, and that at this market clearing price there are 500 rental units. Further, suppose that it is predicted that with rent control, the number of units available for rent will fall to 400 and there will be 200 units that are not occupied. Assume that the market demand and supply of rental units are linear. Calculate the dollar value of the impact rental law policy on the landlords, tenants and society as a whole 2$ 500 400 D. Rental units 500
The demand and supply curves shown below apply to a competitive market for a factor used in the production of widgets. IX C B Factor price (S) HD98265 11 10 0 $210: $1 $6; 52 This factor market is in equilibrium at point B. In equilibrium, the 30th unit of the factor is being paid transfer earnings of and economic rent of $16, $2 $120:-$2 D $7:51 10 20 30 40 50 60 Quantity of factor
What best describes why higher-income people are more likely to be landlords in terms of tax benefits? [Note: this question is vague, so you should understand why the answer matters] Higher-income people pay lower property taxes O Higher-income people have a higher marginal tax rate O Higher-income people can afford more expensive houses Higher-income people have a higher opportunity cost of owning a home
Title Suppose that the market demand function for cows is Q = 1,000,000p-2, where Q is the number of cows. Description Suppose that the market demand function for cows is Q = 1,000,000p-2, where Q is the number of cows per month and p is the price per cow. The market supply function is Q = p. a. What are the equilibrium price and quantity of cows? What is the consumer surplus, the producer surplus, and welfare? b. Now suppose that the government provides a subsidy of $100 per cow. What are the new equilibrium price and quantity, the consumer surplus, the producer surplus, and welfare? Round your answers to whole numbers.
Ñ2 Consider the following market demand and supply: Demand: P = 13 - 5Qd Supply: P = 6 + 2Qs If the market is at equilibrium, what is the total economic surplus? Note: Express your answer in units of dollars, to at least two digits after the decimal.
"New York City has a long-standing policy of control-ling rents in certain parts of the city—in essence, a price ceiling on rent. Is the market for apartments likely to be efficient or inefficient? What does this imply for the size of total surplus?"
1. Economic rent The following graph shows a competitive labor market. 50 40 40 WAGE RATE (Dollars per hour) 20 30 30 10 0 2 4 Labor Supply Labor Demand Labor Supply Economic Rent Labor Demand 6 8 10 QUANTITY OF LABOR (Billions of hours) Opportunity Cost (?) Based on the graph, the total amount paid to workers in this market (that is, total labor earnings) is On the graph, use the green triangle (triangle symbols) to shade the portion of labor earnings that consists of economic rent. Then, use the purple quadrilateral (diamond symbols) to shade the portion of labor earnings that consists of opportunity cost.
The government wants to increase ecotourism by using farmland to establish special habitats for endangered species. The government will pay farmers half the revenue per acre of habitat that farmers would have received if they had grown wheat on that land. The average wheat yield per acre is 6363 bushels. The average price of a bushel of wheat is $3.76$⁢3.76.How much would the government pay a farmer who wants to establish a habitat on 44 acres of land? Enter your answer in the box below and round to two decimal places if necessary.
Table: Demand Schedule of Gadgets Price of a Gadget $10 9 8 7 6 5 4 3 2 1 0 Quantity of Gadgets Demanded Reference: Ref 31-1 0 100 200 300 400 500 600 700 800 900 1,000 (Table: Demand Schedule for Gadgets) Examine the table Demand Schedule for Gadgets. The market for gadgets consists of two producers, Margaret and Ray, who split the production of output equally. Each firm can produce gadgets at a marginal cost and fixed cost of $0. The table shows the market demand schedule for gadgets. If these two producers formed a cartel and acted to maximize total industry profits, each firm's output would be _____and each firm's profit would be Select one: O a. 500; $2,500 O b. 250; $1,250 O c. 1,000; $500 O d. 1,000; $10,000
Suppose the rent control (price ceiling) in California will be nullified for a year and that market rents will now be institutionalized. Assume that all apartment units are of identical structure and so are offered at the same rent. To address the plight of the residents, especially those who may be unable to pay the market rent, an income subsidy will be given to all low-income households equal to the difference between the old controlled rent and the new market rent. 1. Are the renters or tenants better or worse off as a result of these policies? What about the rentees or the landlords, are they better or worse off?