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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

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If your answer is zero, enter "O". a. Under a 2017 divorce agreement, Joan is required to pay her ex-husband, Bill, $2,340 a mon

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Answer:

$2,400 in 2019 are deductible as alimony.

Step-by-step explanation:

Hillary get divorced in the year = 2016

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His son will reach of the age of 18 = 2016 + 7 = 2023

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3 years ago

In need of extra cash, Troy and Lily decide to withdraw $2 comma 100 from their traditional IRA. They are both 40 years old. T

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Answer:

Calculate the tax consequence of withdrawal from retirement account.

T and L are 40 years old and decide to withdraw $2,100 from their IRA. They lie in a 35% marginal tax bracket.

Analysis

They are withdrawing some amount from their retirement fund. They have to pay the tax and penalty for early withdrawals from the retirement fund. The withdrawal amount is $2,100 so they have to pay tax on it. The tax rate will be 35% which is their marginal tax bracket.

Calculation of tax consequences if withdrawal amount is $2,100:

Ordinary income tax amount calculates by multiplying the withdrawal amount with the ordinary tax rate.

= $2100 × 35%

= $735

The withdrawal amount attracts the 10% penalty. So, the penalty amount is calculated as follows: Penalty on withdrawn funds calculates by multiplying the withdrawn funds with the percentage of penalty.

= $2100 × 10%

= $210

(NOTE: - T and L have to pay ordinary income tax along with the penalty on their withdrawal because they are withdrawing funds from their IRA before age 59.5.)

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Conclusion

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