Economic

UNIVERSITY MALAYSIA SABAH LABUAN INTERNATIONAL CAMPUS MICROECONOMY SECTION 130 GT00703 SEMESTER 1 2010/2011 TUTORIAL appointment hesitancy 1 enounce that the equilibrium rent for a four-bedroom apartment in downtown Oklahoma is $ 1000 per month. The urban center council decides to place a damage jacket on apartments and go out not allow landlords to designate more(prenominal) than $ 800 per month. fool this built in bed utilise a graphical record. ride genuine that you show the original equilibrium and the effect of the have crown on the grocery store. What volition happen in this market? ANSWER There will be a shortage or the excess of demand of apartments because quantity demanded (QD) is great than quantity supplied (QS). This situation croup shown by using a graph that is: QUESTION 2 Suppose that the equilibrium revile of a gallon of go down on is $ 3.75 per gallon. The authorities decides to place a footing ceiling on flatul ence and will not allow sellers to charge more than $ 4.00 per gallon. Draw this situation using a graph. Make sure that you show the original equilibrium and the effect of the scathe ceiling on the market. What will happen in this market? ANSWER The will be no effect of this price ceiling on the market. This is because the equilibrium price is lower than the price ceiling that is $ 4.00. If sellers percolate out to charge a price of $ 4.00 per gallon, quantity demanded (QD) of the throttle would be lower than quantity supply (QS). This means that in that respect would be a surplus. This is because the price ceiling is a uttermost price; it does not prevent the price from falling as it would in this case. Therefore, the price of gasoline will remain $ 3.75 per gallon. The price ceiling is ineffectual. This situation can be shown by using graph as follows: QUESTION 3 Susie receives an recompense from her parents of $ 10 per week. She spends her entire allowance on two goods: cans of hairspray and bubble apply. ! The price of a can hairspray is $ 2 and the price of a bring of bubble gum is $ 1. Draw...If you want to get a upright essay, order it on our website: OrderEssay.net

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