Homework Help Question & Answers

7. The market for rental housing in Berkeley is subject to rent-control. Before rent control, the...

7. The market for rental housing in Berkeley is subject to rent-control. Before rent control, the compet itive equilibrium wa

7. The market for rental housing in Berkeley is subject to rent-control. Before rent control, the compet itive equilibrium was at Pc and Q. Rent control limits the price a landlord can charge to P. The short-run supply curve is upwards sloping, and long-run supply is horizontal. (a) Is this a constant cost industry? Why? (b) What is the difference between the short-run and the long-run supply curve? (c) Comment on the efficiency of the competitive equilibrium. Is it Pareto Optimal? WHY? (d) What are the short-run efficiency and distributive effects of rent control? (e) What will be the m number of rental units in the long-run? Explain the transition. What are the long-run efficiency and distributive effects? Is the imposition of rent control a (f) Why has rent control been called the most effective way to destroy, short of bombing, the stock (g) What kinds of phenomena would you expect in the long-run to try and exploit any remaining (h) Provide a rationale for why we observe rent controls. potential Pareto improvement? Explain. of rental housing in a city? gains from trade?
0 0
ReportAnswer #1

ANSUER Given 15 at Compe titive eui ium a pnd pprice .: Guennat shot. Tun supply lusve is upute toal fom he nen data, ost cusi t) İ즈z-it -Pareto optimal :- denand ot pice level, shont- stun tupp tn deman an tun Spy a pareto optimal d) ent contyol sho

Add Homework Help Answer
Add Answer of:
7. The market for rental housing in Berkeley is subject to rent-control. Before rent control, the...
Your Answer: Your Name: What's your source?
Not the answer you're looking for? Ask your own homework help question. Our experts will answer your question WITHIN MINUTES for Free.
More Homework Help Questions Additional questions in this topic.
Need Online Homework Help?
Ask a Question
Get FREE EXPERT Answers
WITHIN MINUTES
Related Questions