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Who bears the primary costs of a rent control program? the wealthy Assume the de

ID: 1204885 • Letter: W

Question

Who bears the primary costs of a rent control program?

the wealthy

Assume the demand for sushi is Qd = 180 - 3P, where Qd is quantity demanded and P = price in dollars. The supply of sushi is Qs = 80 + 5P, where Qs is quantity supplied (and P is, again, price in dollars). A price of $20 would result in:

US agricultural price supports are politically popular because

The costs are spread out among millions of people

Assume the demand for sushi is Qd = 180 - 3P, where Qd is quantity demanded and P = price in dollars. The supply of sushi is Qs = 80 + 5P, where Qs is quantity supplied (and P is, again, price in dollars). What would be the equilibrium price?

$15

Price floors and ceiling prices:

A change in the price of a good leads to a change in ________, which leads to a ___________

When the supply of a product increases, this implies that

producers will offer less for sale at each possible price

If there is a excess demand for product X:

the price of the product will decline.

Which of the following will occur when there is a simultaneous decrease in demand and a decrease in supply?

A decrease in equilibrium quantity

Velcro is becoming more and more popular for a variety of uses, including as fasteners for shoes. What should happen to the equilibrium price and quantity for shoelaces as a result?

Nothing.

If the government imposes a ceiling price on apartment rents, we would expect to observe all of the following except one. Which is the exception?

supply; movement along the supply curve

both cause shortages.

A. landlords B. renters that get rent-controlled apartments C. taxpayers D.

the wealthy

Assume the demand for sushi is Qd = 180 - 3P, where Qd is quantity demanded and P = price in dollars. The supply of sushi is Qs = 80 + 5P, where Qs is quantity supplied (and P is, again, price in dollars). A price of $20 would result in:

A. Excess supply of 60 B. Excess supply of 120 C. Excess supply of 140 D. Excess demand of 140

Explanation / Answer

1. landlords

2. Excess supply of 120. Because at P = $20, Supply is 180 and demand is only 60.

3. They have no adverse impacts

4. $12.50

Explanation: for equilibriom the condition is Demand = supply

=> 180 - 3P = 80 + 5P

=> 8P = 100

=> P = 100/8 = $12.5

5. interfere with the rationing function of prices.

6. quantity supplied; movement along the supply curve

7. the price of the product first declined

8. the price of the product will rise.

9. A decrease in equilibrium quantity

10. Both price and quantity should decrease.

11. an increase in the number of new apartment complexes being built