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3 years ago

Suppose that the demand and supply schedules for rental apartments in the city of Gotham are as given

Business

1 answer:

denis-greek [22]3 years ago

3 0

Answer:

a) Equliibrium Price: 2,000,

b) Shortage, 5,000 units, 10,000 units actually rented

c) Surplus, 5,000 units, 10,000 units actually rented

Explanation:

The demand and supply schedules for rental apartments in the city of Gotham are given as:

Monthly Rent Apartments Demanded Apartments Supplied

2500 10,000 15,000

2000 12,500 12,500

1500 15,000 10,000

1000 17,500 7,500

500 20,000 5,000

a) At equilibrium price, number of apartment demanded equals number of apartment supplied. From the table, the equilibrium price is $2,000.

b) If the local government can enforce a rent-control law that sets the maximum monthly rent at $1500, then number of apartments supplied is 10,000. and the number of apartments demanded is 15,000.

This means there is going to be a shortage of 15,00-10,000=5,000.

The number of units that is actually rented is 10,000

c) if a new government declares that the minimum rent that can be charged is $2500 per month, then , the apartments supplied at this price is15,000 units and the apartment demanded at this price is 10,000 units. Since supply outweighs demand, there is going to be a surplus of 15,000-10,000=5,000 units.

The number of units that is actually rented each month refers to the effective demand, which is 10,000

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A plant asset acquired on October 1, 2018, at a cost of $400,000 has an estimated useful life of 10 years. The salvage value is

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Answer:

The depreciation expense for the first two years is $72,000.

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Under straight-line method, depreciation expense is (Cost - Residual value) / No of years = ($400,000 - $40,000) / 10 years = $36,000 yearly depreciation expense.

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3 years ago

The homeowner's property tax exemption will reduce an assessed valuation of $200,000 to:____.

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As per the rate of the tax, the valuation of $200,000 will become $193,000.

Given Data:

Valuation Price = $200,000

To Find:

After-Tax exemption Valuation= ?

Let us consider the general interest rate of the property. It would be about 3.5% which is 0.035.

According to the normal tax of about 3.5% will become $7000 which will be exempted from the total evaluation therefore it will become $193,000.

Solution:

Tax Value in $ =$200,000 x 3.5% = $7000

here we have the $7000 which is the amount of tax paid by the homeowner.

Putting the value of the tax;

Tax after exemption of tax value = $200,000-$7000

= $193,000

So, the $193,000 is the price after the deduction of tax by the homeowner.

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