The figure below shows the demand for on-campus housing. The college has 200 rooms to rent. If the college puts a strictly enforced rent ceiling on rooms of $550 a month: a. What is the rent? b. How many rooms are rented? c. Is the on-campus housing market efficient? Explain why or why not.

The figure below shows the demand for on-campus housing. The college has 200 rooms to rent. If the college puts a strictly enforced rent ceiling on rooms of $550 a month: a. What is the rent? b. How many rooms are rented? c. Is the on-campus housing market efficient? Explain why or why not.

Macroeconomics

13th Edition

ISBN:9781337617390

Author:Roger A. Arnold

Publisher:Roger A. Arnold

Chapter4: Prices: Free, Controlled, And Relative

Section: Chapter Questions

Problem 6QP

See similar textbooks

Related questions

Q: Liam thinks that commercial property taxes should be raised to help fund public education. May…

A: Share of tax burden depends on relative elasticities of demand and supply.

Q: Draw a graph of the mask market in Italy. 1. Begin by showing the market before the pandemic when…

A: When there was no pandemic, the demand and supply curves intersected each other, thus there was…

Q: Draw the demand and supply curves. With no rent ceiling, what is the rent and many apartments are…

A: Equilibrium price is the price at which quantity demanded equals quantity supplied and the market…

Q: The graph below shows the market for widgets. The government is considering intervening in this…

A: “Since you have posted a question with multiple sub-parts, we will solve first three sub-parts for…

Q: (Figure: The Market for Economics Textbooks) Use Figure: The Market for Economics Textbooks. At a…

A: The given diagram shows the market for the economics textbook. D shows the demand for the textbooks…

Q: $50 Supply $40 $30 $20 Price $10 Ceiling Demand $0 40 80 120 160 200 Quantity In the market shown in…

A: Price ceiling is the maximum price that can be charged. It is binding if it set below the…

Q: Draw a supply and demand graph showing rent control. Indicate the black market price. Does rent…

A: Rent-controlled properties create substantial negative externalities on the nearby real estate…

Q: e. How did the price ceiling change the total surplus compared to free market equilibrium of #9?

A: equilibrium is achieved where Qd=Qs.Thus Q*= 40 millions, P*= $40

Q: LOOK at the figure Producer Surplus. When the price falis from $45 to $35, producer surplus för a…

A: A producer will sell their product when the market price is greater than or equal to the minimum…

Q: Suppose instead the price ceiling was set at $6. In that case, the market price is what? If the…

A: The market is a system which would have a large number of buyers and sellers in the market. The…

Q: The graph shows the demand for on-campus student housing at Purdue University in Lafayette, Indiana.…

A: The economics as a study is based upon the basic idea of scarcity of resources, which occurs because…

Q: price ceiling

A: A price ceiling is the maximum amount that a seller can charge for a product or service. This…

Q: how is the price of Fertilizer determined? we know that the price of a good is formed from the…

A: Demand and Supply The quantity of a commodity that Buyers are willing to buy at various prices is…

Q: Question 1: Recently the local government in Shanghai has introduced a price ceiling for the sale of…

A: Answer: Price ceiling: When the government imposes a legal maximum on the price of a good then it is…

Q: Assume one bedroom apartments in San Francisco rent for a $1,000 a month. Then, the City imposes a…

A: Price ceiling is the maximum price that can be charged. It is binding when it is set below the…

Q: market surplus or shortage w

A: Supply(SS) and demand(DD) are the two major components of market. The point of intersection of…

Q: In order to keep restaurant costs down, the franchise places a price ceiling on employee pay at…

A: Answer -

Q: In this chapter, we focused on the effect of taxes on social welfare. However, governments also…

A: ANSWER In the competitive market product prices are effected with sales taxes. For example a firm…

Q: How does a price ceiling below equilibrium affect the market? How does a price ceiling above…

A: A price ceiling is the set limit on how much a seller can charge for a product or service. Price…

Q: The City imposes a minimum wage of $6 an hour for fast food workers when the market rate is $8. What…

A: Minimum wage is an example of price floor that states the minimum price that must be paid to…

Q: Consider the market for electric cars. The Government of Canada announces that consumers who…

A: Any fluctuations in market condition will result in shift or movement on demand and supply curve and…

Q: shopping center nearby, you saw an organic grocery store that barely sells any goods in a day. You…

A: In the long run, highly competitive markets do not enjoy economic benefits. The presence of economic…

Q: Let the following be the supply and demand for coconuts. P 2 3 4…

A: As per the given information, demand = supply for price $5. At this price, the QD = QS = 400.Now as…

Q: Quantity What is the consumer surplus? A What is the producer surplus? C+F What is the deadweight…

A: Consumer surplus = area between demand curve and market price = A

Q: If a government imposed a minimum price at point A; discuss the type of price control this would be…

A: The type of price control used here is Price floor. It the minimum possible price set by the…

Q: Suppose that the average monthly rent for apartments is $1,200. At this price, how many apartments…

A: When the quantity demanded and the quantity supplied is equal this is known as equilibrium.

Q: Above is a market for lumber. What is the amount of the tax that eliminates the inefficiency in this…

A: In the above market, inefficiency arises due to the difference in the private marginal cost…

Q: Use the table below to answer the following question. Quantity of Quantity of Rent apartments…

A: At equilibrium, Quantity demanded is equal to quantity supplied. Therefore, from table quantity…

Q: What does rent control do to the pricing and supply of apartment units? According to the Wall Street…

A: The equilibrium level of output and prices is given by the intersection of the demand and supply…

Q: problem 1. Think about the market for parking spaces in downtown LA. There is little flexibility in…

A: In the above graph, if the total parking is at the D1 intersecting at S, but if there are substitute…

Q: Think about the market for parking spaces in downtown LA. There is little flexibility in terms of…

A: a.When the demand for the parking lot is high in the town and the availability of the parking slots…

Q: How does a tax on sellers affect the market equilibrium?

A: For sellers of a product, a tax is imposed. The direct effect of the tax in this situation is on the…

Q: The market for bottles of broccoli juice is given below. Price $10 $9 S $8 $7 $6 $5 $4 $3 D $2 (45…

A: Tax refers to the compulsory payment that imposed by the government on consumer, individual people…

Q: K The table shows the demand and supply schedules for on-campus housing. If the college puts a rent…

A: Here, the given table shows quantity demanded and quantity supplied of on-campus housing at…

Q: (Table: The Market for Taxi Rides) Use Table: The Market for Taxi Rides. If a government quota limit…

A: Economic rent refers to the price different between he demand and supply at the particular level of…

Q: he table shows the demand and supply schedules for on-campus housing. the college puts a rent…

A: In a market, price ceiling refers to the maximum price of a product that is set by the government.

Q: The table shows the demand and supply schedules for on-campus housing. Quantity demanded Quantity If…

A: The maximum amount of rent that can be charged by the owner is called the rent ceiling.

Q: Explain how a price ceiling leads to excess demand or market shortage. Use a diagram to motivate…

A: Price ceiling The maximum legal pricing for a service or product is known as a price ceiling. A…

Q: Suppose the government put into place a program where steel makers were given a subsidy based on the…

Q: The diagram shows the market for a good with an initial equilibrium price of $10. The demand fo the…

Q: The graph above shows the market for gasoline after the government imposes a price ceiling of $3.50…

A: A price ceiling set below the equilibrium price is binding price ceiling, it will create shortage of…

Q: Draw a diagram showing the market for generators with an equilibrium price at $250. Now impose a…

A: The graph below shows the price ceiling and the equilibrium market price. The price ceiling is…

Question

The figure below shows the demand for on-campus housing. The college has 200 rooms to rent.
If the college puts a strictly enforced rent ceiling on rooms of $550 a month:
a. What is the rent?
b. How many rooms are rented?
c. Is the on-campus housing market efficient? Explain why or why not.
Price (dollars per month)
700
650
600
550
500
D
150
175
200
225
250
Quantity (rooms)

Expert Solution

This question has been solved!

Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.

This is a popular solution!

SEE SOLUTION Check out a sample Q&A here

Concept

VIEW

Graphical Representation

VIEW

Solution

VIEW

Trending now

This is a popular solution!

Step by step

Solved in 3 steps with 1 images

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, economics and related others by exploring similar questions and additional content below.

Similar questions

There is a lot of discussion around market prices and economic rents – you are to investigate a product you are assigned and discuss price variability in the product e.g. are there differences in quality, demand, supply and/or price and think about why that might be the case and are there economic rents occurring? Product: Bread
Price per Ice-cream (Rs.) Demand for Ice cream (Qd) Supply for Ice cream (Qs) 140 500 1500 120 750 1200 100 1000 1000 80 1250 750 60 1500 600 40 1750 300 What is the maximum price that consumer is willing to pay for 1500 bottles?
Price per Ice-cream (Rs.) Demand for Ice cream (Qd) Supply for Ice cream (Qs) 140 500 1500 120 750 1200 100 1000 1000 80 1250 750 60 1500 600 40 1750 300 (1) What is the maximum price that consumer is willing to pay for 1500 bottles? (2) What is the minimum price that producer is willing to accept for 1500 bottles?
The following table shows the demand and supply of tickets of a football game which will be held at Shah Alam Stadium. Unit Price (RM) Market Demand (units) Market Supply (units) 20 5000 3500 40 4000 3500 60 3000 3500 80 2000 3500 100 1000 3500 a) On your foolscap paper, draw the demand and supply curves. Label all axes, all curves and the equilibrium point. (6m) b) How much is the equilibrium price and equilibrium quantity? (2m) c) At which price will there be a surplus of 2500 tickets? (1m) d) What will happen when the market price is RM40? Show your answer on the same diagram. (3m) e) Why is the supply of tickets fixed at 3500? (1m)
A gasoline station very near a professional football stadium parks car on its lot to make money on game days. Last year it charged $4.00 per car and parked 1000 cars. This year it raised the parking price to $5.00 and parked 850 cars. Did the station owner make a good economic decision in raising the parking prices from one year to the next? Explain.
A gasoline station very near a professional football stadium parks car to make money on game days. Last year it charged $4.00 per car and parked 1,000 cars. This year it raised the parking price to$ 6.00 and parked 800 cars. Calculate the total revenue. Did the station owner make a good economic decision in raising the parking prices from one year to the next?
14. A supply and demand puzzle The following graph presents the market for bikes in 2018. Between 2018 and 2019, the equilibrium quantity of bikes remained constant, but the equilibrium price of bikes increased. Given this information, you can conclude that between 2018 and 2019, the supply of bikes and the demand for bikes Make changes to the graph to illustrate your answer by showing the positions of the supply and demand curves in 2019. Note: Select and drag one or both of the curves to the desired position. Curves will snap into position, so if you try to move a curve and it snaps back to its original position, just drag it a little farther.` bike) Supply | Demand
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 U.S. government controls roughly 75% of the world’s helium supply, and in 1996, it set a price floor for the helium market, which outlaws the sale of helium below $64 for 1,000 cubic feet. Suppose that the graph below illustrates the market for helium after the price floor was implemented. (c) The quantity bought in the market is __ cubic feet. (d) The quantity sold in the market is ___ cubic feet.
The supply and demand curves of a product are shown in Figure 6.13. Approximate the difference in the total gains from trade if the price is artificially increased from the equilibrium price of p-95 to p - 110. punt 200 180 160 140 120 888888 100 80 60 40 20 50 (a) $137.50 (b) $3,250 (c) $4,675 (6) $4,750 100 150 Figure 6.13 (4) $7862.50 () $6000 200 Click if you would like to show Work for this question: Doen Show Work 9 th By accessing this Question Assistance, you will learn while you earn points based on the Point Potential Policy set by your instructor 0 ViewSonic Question Attempts: 0 of 3 used Earn Maximum Points available answer this question correctly
The table below shows the market for AA batteries in Tulsa, Oklahoma, when tornadoes threaten the area. Market for AA Batteries with Tornado Threat Quantity of Quantity of Batteries Batteries Demanded Supplied (packages) 100 80 60 40 20 Price (dollars) $15 13 9 7 5 (packages) 40 50 60 70 80 90 Note:- Do not provide handwritten solution. Maintain accuracy and quality in your answer. Take care of plagiarism. Answer completely. You will get up vote for sure.
p ($/unit) 200k 160 120 80 40 5000 Equilibrium price =$ Equilibrium quantity a) What are the equilibrium price and quantity for the supply and demand curves in the figure above? = S (quantity) Consumer surplus =$ i 10000 b) Estimate the consumer and producer surplus. Producer surplus =$ i Round your answers to the nearest thousand. SUPPORT