1.When rent control, or any price control, is imposed upon a market, four alternative methods of...

1.When rent control, or any price control, is imposed upon a market, four alternative methods of allocation emerge to determine who gets the product or service. What are those four methods?

2.In the case of rental housing, which of the four methods may do the greatest harm to society, in your opinion? Why?

Expert Solution

Rahul Sunny answered 2 years ago

IN THE USA 1.When rent control, or any price control, is imposed upon a market, four...

IN THE USA 1.When rent control, or any price control, is imposed upon a market, four alternative methods of allocation emerge to determine who gets the product or service. What are those four methods? 2.In the case of rental housing, which of the four methods may do the greatest harm to society, in your opinion? Why? 3. What is the problem that rent control attempts to solve? That is, what are the goals of rent control? Why does a pure...

1. Graph the market for apartment units that has a binding price ceiling (rent control) and...

1. Graph the market for apartment units that has a binding price ceiling (rent control) and a consumer subsidy. 2. Graph the market for tobacco that has both a consumer tax, and a producer subsidy. For each, always indicate any surplus or shortage, and under- or over-allocation.

One of the consequences of a government imposed rent control ceiling with the ceiling set below...

One of the consequences of a government imposed rent control ceiling with the ceiling set below the equilibrium rental price is: Select one: a. a surplus of apartments. b. a shortage of apartments. c. decreased search activity of people who want to rent apartments. d. an increase in maintenance and additional amenities like swimming pools and free cable

• In the summer of 1979, our government imposed a ‘price ceiling” - or price control—on...

• In the summer of 1979, our government imposed a ‘price ceiling” - or price control—on gasoline. Why did they do this? What was their goal? 2. What went wrong, exactly? 3. Often, when the price of a product or service is held “too low”, a shortage develops and ‘FOUR ALTERNATIVE FORMS OF ALLOCATION’ must step in to take the place of the price system (the ‘highest bidder’ system). What are these four alternative methods? Please describe each one. 4....

If a price floor above the equilibrium price is imposed by government in a market: A....

If a price floor above the equilibrium price is imposed by government in a market: A. Shortages of the commodity will develop B. The quantity demanded will exceed the quantity supplied C. The quantity supplied will exceed the quantity demanded D. The free-market equilibrium price and quantity will still be realized

Short Answer: For the topic of rent control, please explain how rent control works when compared...

Short Answer: For the topic of rent control, please explain how rent control works when compared to a free market. Explain the effects of rent control upon prices and quantities and the impacts to the consumer and producer surplus.

1) Explain why rent control is an example of a price ceiling. 2) Explain why price...

1) Explain why rent control is an example of a price ceiling. 2) Explain why price ceilings can lead to shortages in terms of supply and demand. 3) Explain the concept of consumer surplus and producer surplus. What effect does rent control have on consumer surplus and producer surplus? 4) Are you an opponent or proponent of rent control? Provide reasons for your stance.

Assume a price floor is imposed in the market for milk at the current equilibrium price,...

Assume a price floor is imposed in the market for milk at the current equilibrium price, and that a price ceiling is imposed in the market for natural gas at the current equilibrium price. What will a decrease in demand for both milk and natural gas create? a. Shortages in both the milk and natural gas markets. b. Surpluses in both the milk and natural gas markets. c. A surplus in the milk market and a shortage in the natural...

What are the four types of trade barriers and has China imposed any of these?

What is primary market research? Describe any four primary market research methods. Provide an example of...

What is primary market research? Describe any four primary market research methods. Provide an example of a time where you, as a consumer, participated in at least one of the primary research methods. Describe your personal experience.

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