Rent control does decrease housing costs for some low income households, the savings from dwelling in these devices tends to accrue disproportionately to families who show up to be in the right vicinity at the proper time; and a couple of households in better income brackets with greater ability to secure.
According to the basic idea of supply and demand, rent control causes housing shortages that lessen the wide variety of low-profit folks who can stay in a town. Even worse, lease manipulation will have a tendency to raise demand for housing — and therefore, rents — in other areas.
Policymakers often react to the results of hire manipulation by means of implementing additional rules. As an example, there are laws that make racial discrimination in housing unlawful and require landlords to provide minimally ok residing situations. Those laws, but, are difficult and luxurious to implement.
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Answer:
Explanation:
The price system and I assume you mean the free price system, is very important in an economy. There are advantages and disadvantages to it.
In a free price system, the forces of supply and demand determine prices. The most efficient use of resources is when supply matches demand. Supply and demand are equal when the market determines the price at which a number of goods supplied equals a number of goods demanded. The price system also allows us to buy many products. Manufacturers are willing to make products when they can make money. When supply equals demand, businesses are maximizing the profit potential at the given price level.
One disadvantage of the price system is that for certain products, the costs of setting up the industry are so high, there is only one seller of the product. In cases like these, such as with the electric and the natural gas companies, or with the water companies, without government regulation, prices could be very expensive since they are the only provider of the product. In these cases, the government needs to regulate these industries because the price system would lead to very high prices for water, electricity, and natural gas. Since the setup costs for these industries are so high, there is no competition for these companies. This could cause consumers to make some very difficult choices if the prices are regulated by the government.
Answer:
Equilibrium quantity: 145
Equilibrium price: $140
Explanation:
In order to find the answer, first we determine the current difference between quantity supplied and quantity demanded.
Quantity supplied - quantity demanded = difference
125 - 165 = -40
So we have a shortage of -40 units.
We have the information that a $1 increase in price increases supply by 2, and decreases demand by 2. Thus, in order to close the shortage, we need a $10 price increase, because this will raise supply by 20 units, and lower demand by 20 units as well, bringing the 40 gap to 0.
For this reason, the equilibrium quantity is 145 units, and the equilibrium price is $140.
Answer and Explanation:
The preparation of the operating activities section is presented below
Cash Flows from operating activities
Net Income $88,000
Adjustment made for non cash items:
Depreciation Expense $19,000
Add: Decrease in Account Receivable $15000 ($70,000 - $85,000)
Less: Increase in Inventory $(5000) ($40,000 - $35,000)
Less: Decrease in accounts payable $(8000) ($54,000 - $62,000)
Net cash flows from operating activities $109,000
