All categories

3 years ago

Suppose a city is considering placing a ceiling on rent for one-bedroom apartments, at $1,000 per apartment.

Business

1 answer:

Dafna1 [17]3 years ago

4 0

Answer:

(a) The market equilibrium rent is $1,400 and the equilibrium quantity is 15 thousand apartments.

(b) With the price ceiling, the rent is $1,000 per apartment and the quantity rented is 10 thousand apartments.

Explanation:

(a) At equilibrium, demand function equals supply function

1700 - 20Q = 80Q + 200

1700 - 200 = 80Q + 20Q

100Q = 1500

Q = 1500/100 = 15

Substitute the value of Q in the demand function

P = 1700 - 20Q = 1700 - 20(15) = 1700 - 300 = 1400

Equilibrium rent = $1,400

Equilibrium quantity is 15 thousand apartments

(b) Rent with price ceiling is $1,000 per apartment

Substitute the value of P in the supply function

P = 80Q + 200

1000 = 80Q + 200

1000 - 200 = 80Q

80Q = 800

Q = 800/80 = 10

Quantity rented is 10 thousand apartments

P = 1000

Q = (1700 - 1000)/20 = 700/20 = 35

Excess demand = 35 - 15 = 20

You might be interested in

7. You have saved $4,000 for a down payment on a new car. The largest monthly payment you can affort is $350. The loan will have

nordsb [41]

Answer:

$13,290.89 and $15,734.26

Explanation:

In this question we have to use the Present value function which is shown on the attachment below:

In the first case

Provided that

Future value = $0

Rate of interest = 12% ÷ 12 months = 1%

NPER = 48 months

PMT = $350

The formula is shown below:

= PV(Rate;NPER;PMT;FV;type)

So, after solving this, the present value is $13,290.89

In the second case

Provided that

Future value = $0

Rate of interest = 12% ÷ 12 months = 1%

NPER = 60 months

PMT = $350

The formula is shown below:

= PV(Rate;NPER;PMT;FV;type)

So, after solving this, the present value is $15,734.26

8 0

3 years ago

First Class, Inc., expects to sell 22,000 pool cues for $12.00 each. Direct materials costs are $4.00, direct manufacturing la

MatroZZZ [7]

Answer:

budgeted costs for direct materials

$88,000

budgeted direct manufacturing labor

$132,000

budgeted manufacturing overhead

$18,480

Explanation:

Direct materials costs are $4.00 per pool cue.

Direct manufacturing labor is $6.00 per pool cue.

Manufacturing overhead is $0.84 per pool cue.

total budgeted direct materials = 22,000 x $4 = $88,000

total budgeted direct labor = 22,000 x $6 = $132,000

total budgeted manufacturing overhead = 22,000 x $0.84 = $18,480

The information about the beginning and ending inventories is not relevant to this question since it only deals with budgeted or estimated costs which may or may not differ from actual costs.

3 0

3 years ago

On January 1, 2017, the merchandise inventory of Glaus, Inc. was $1,600,000. During 2017 Glaus purchased $3,200,000 of merchandi

valentinak56 [21]

Answer: $1,800,000

Explanation:

The merchandise inventory of Glaus at December 31, 2017 will be:

Begining Inventory = $1,600,000

Add: Purchases = $3,200,000

Less: Cost of goods sold = $4,000,000

Add: Gross profit = 25% × $4,000,000 = $1,000,000

Ending Inventory = $1,800,000

The answer is $1,800,000.

8 0

2 years ago

Former GVO marketing director, David Lieberman, tells a story about a new product idea proposed by a creative person. The idea w

Sati [7]

Answer:

The correct answer is C) behavioral barrier.

Explanation:

Organizational barriers can be any number of things that range from physical elements to individual and group attitudes. They don't have to be important elements. They can be as simple as an extended absence of employees or as important as the acquisition of an organization by a foreign government. They can even be perceptions that have no basis in reality. The key to identifying barriers and eliminating their constrictive effect is to carefully identify all aspects of them.

4 0

3 years ago

g When a company’s resources are valuable, rare, imperfectly imitable, and nonsubstitutable, it has a . Necessary to sustain a c

malfutka [58]

Answer:

Rare resources

Explanation:

Rare resources are unique resources that is not controlled or possessed by many competing firms. Only a small number of competing companies control it. It usually stands out by being distinctive among the set of future competitors. Rare resources are short in supply and capable of persisting over an extended time, this makes it a source of competitive advantage for a company.

7 0

2 years ago

Read 2 more answers