Microeconomics (13th Edition)
13th Edition
ISBN: 9780134744476
Author: Michael Parkin
Publisher: PEARSON
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Question
Chapter 6, Problem 1SPA
a)
To determine
Equilibrium rent and
a)
Expert Solution
Explanation of Solution
The equilibrium is attained at the point where
Economics Concept Introduction
Demand: Demand refers to the total value of the goods and services that are demanded at a particular price in a given period of time.
Supply: Supply refers to the total value of the goods and services available for purchase at a particular price in a given period of time.
b)
To determine
Rent paid and shortage of housing.
b)
Expert Solution
Explanation of Solution
Since the rent ceiling of $600 per month is set above the equilibrium rent of $450 per month, the action does not make the equilibrium rent illegal or irrelevant. Thus, the renters will pay the equilibrium rent of $450 per month. There will be no shortage of housing as the quantity demanded of housing units will be equal to the quantity supplied (20,000 housing units).
Economics Concept Introduction
Rent ceiling: Rent ceiling is a
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Students have asked these similar questions
If the rent is fixed below the equilibrium level,
what would be the effect on the supply of houses?
a. There will be no supply of houses
b. Supply for house decreases
c. No change in the supply of houses
d. Supply for house increase
The table shows the demand and supply schedules for on-campus housing.
If the college puts a rent ceiling on rooms of $350 a month, rent is $7 and the
number of rooms rented is 4.
The on-campus housing market is inefficient
Rent
(dollars per month)
250
275
300
325
350
375
Quantity
demanded
2,500
2,250
2,000
1,750
1,500
1,250
(rooms)
Quantity
supplied
2,000
2,000
2,000
2,000
2,000
2,000
Next
The government raises the minimum wage from $7.25 to $10.00 per hour. What is the effect on the job market (number of jobs, people demanding jobs etc)? How will it affect the prices at fast food joints? 1. What has happened that has you concerned as an economist (explain the scenario)
2. what two main products(or area) are you watching as this event unfolds? 3. Graph the effect in a supply and demand graph
4.What will be the effects of this event on our society?
Chapter 6 Solutions
Microeconomics (13th Edition)
Ch. 6.1 - Prob. 1RQCh. 6.1 - Prob. 2RQCh. 6.1 - Prob. 3RQCh. 6.1 - Prob. 4RQCh. 6.2 - Prob. 1RQCh. 6.2 - Prob. 2RQCh. 6.2 - Prob. 3RQCh. 6.2 - Prob. 4RQCh. 6.2 - Prob. 5RQCh. 6.3 - How does the elasticity of demand influence the...
Ch. 6.3 - Prob. 2RQCh. 6.3 - Prob. 3RQCh. 6.3 - Prob. 4RQCh. 6.3 - Prob. 5RQCh. 6.4 - Prob. 1RQCh. 6.4 - Prob. 2RQCh. 6.4 - Prob. 3RQCh. 6.4 - Prob. 4RQCh. 6.4 - Prob. 5RQCh. 6.5 - Prob. 1RQCh. 6.5 - Prob. 2RQCh. 6.5 - Prob. 3RQCh. 6.5 - Prob. 4RQCh. 6 - Prob. 1SPACh. 6 - Prob. 2SPACh. 6 - Prob. 3SPACh. 6 - Prob. 4SPACh. 6 - Taxes (Study Plan 6.3) 5.The table in the next...Ch. 6 - Prob. 6SPACh. 6 - Prob. 7SPACh. 6 - Prob. 8SPACh. 6 - Prob. 9APACh. 6 - Prob. 10APACh. 6 - Prob. 11APACh. 6 - Prob. 12APACh. 6 - Prob. 13APACh. 6 - Prob. 14APACh. 6 - Prob. 15APACh. 6 - Prob. 16APACh. 6 - Prob. 17APACh. 6 - Prob. 18APACh. 6 - Prob. 19APACh. 6 - Prob. 20APACh. 6 - Prob. 21APACh. 6 - Prob. 22APACh. 6 - Prob. 23APA
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Similar questions
- The table shows the demand and supply schedules for on-campus housing. If the college puts a rent ceiling on rooms of $750 a month, rent is $ and the number of rooms rented is. The on-campus housing market is Rent (dollars per month) 500 550 600 650 700 750 Quantity demande 2.500 2,250 2,000 1,750 1,500 1,250 (rooms) Quantity supplied 2,000 2,000 2,000 2,000 2,000 2,000arrow_forwardYou have been given the following information about the housing market for two- bedroom rental units in Vancouver: Rent ($ per Quantity Demanded (per month) Quantity Supplied (per month) month) 1,100 20,000 1,200 15,000 5,000 1,300 10,000 10,000 1,400 5,000 15,000 1,500 2,500 20,000 1,600 1,500 25,000 a. Draw a supply and demand graph to illustrate the housing market above. Answer: b. What is the equilibrium rental price and the equilibrium quantity of housing? Answer: c. Suppose that a price ceiling of $1,200 rent per month is imposed in the Vancouver housing market, what will be the effect of this on housing market in Vancouver? Answer:arrow_forwardAssess the effects of Price ceiling. please provide with graph n detail answer.minimum 500 words countarrow_forward
- What are the factors that decrease supply of houses? Draw Supply and demand graph and show what happens to the prices and quantity of houses if the prices of raw materials increase?arrow_forwardDirections Post your initial response by Thursday & reply to 2 other students by Saturday. You have been learning about the factors that affect supply and demand as well as how price affects the quantity demanded or supplied. In this week's discussion board, you will be running a computer printer shop. You only produce and sell various types of printers which you make using various inputs. Below is a list of economic conditions you are currently experiencing: 1. You implemented new technology to build the printers. 2. You experienced a decrease in the price of print ink cartridges a complement for printers. 3. You increase the price of printers. 4. The price of plastic to make the printers decreases, 5. A new eco-friendly trend as emerged and your printer is rated #1 in eco- friendliness. Using the 4-step process in described in chapter 3 complete the following for each scenario: 1. Step 1-Draw a demand curve and supply curve before the economic change took place label as…arrow_forward5 enter your answer as whole numbers A. What is the market equilibrium rental price per month and the market equilibrium number of apartments demand and supplied? market equivalent rental price is: ______ per month B. If the local government can enforce a rental control law that sets the maximum monthly rent at $2250 will there be a surplus or a shortage? ______ Of how may 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 can be charged is $3,250 per month. If the government can enforce that price floor will there be a surplus or a shortage? _______ Of how many units? _______ apartments per month how many units will actually be rented each month? _______ apartments  arrow_forward
- Using the table below answer the following question Price Quantity demanded Quantity supplied $300 60 30 $400 55 40 $500 50 50 $600 45 60 $700 40 70 $800 35 80 In response, to lobbying by the skate board association, the government places aprice ceiling of $400 on skate boards. Use the information provided in Table toplot the supply and demand curve for skate boards.arrow_forwardThere is a market of computer i.e. there is some demand and supply of computer. Shown in a diagram the effect on the demand and supply curve, the equilibrium price and the equilibrium quantity if “THE SALARIES OF ELECTRONIC TECHNICIAN GO UP”.arrow_forwardThe Unique Gifts catalog lists a "super loud and vibrating alarm clock." Their records indicate the following information on the relation of monthly supply and demand quantities to the price of the clock. Demand Supply Price 167 132 $32 137 172 $56 Use this information to find the following. (b) the demand equation p (c) the supply equation p (d) the equilibrium quantity and pricearrow_forward
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