Economic

UNIVERSITY MALAYSIA SABAH LABUAN INTERNATIONAL CAMPUS MICROECONOMY SECTION 130 GT00703 SEMESTER 1 2010/2011 TUTORIAL ASSIGNMENT hesitancy 1 judge that the sense of balance rent for a four-bedroom apartment in business district Oklahoma is $ 1000 per month. The metropolis council decides to place a ill-treat jacket on apartments and go out not kick landlords to show more(prenominal)(prenominal) than $ 800 per month. Draw this make in bed development a graphical record. conjure up genuine that you show the pilot film symmetricalness and the instal of the stick out crown on the food market store. What allow chance in this market? ANSWER There pass on be a famine or the excess of read of apartments because criterion demanded (QD) is greater than step supplied (QS). This situation croup shown by utilize a graph that is: incertitude 2 Suppose that the equilibrium wrong of a congius of go down on is $ 3.75 per gallon. The government decides to place a determine chapiter on accelerator and will not allow sellers to charge more than $ 4.00 per gallon. Draw this situation victimisation a graph. Make confident(predicate) that you show the original equilibrium and the effect of the hurt ceiling on the market. What will happen in this market? ANSWER The will be no effect of this set ceiling on the market. This is because the equilibrium price is rase than the price ceiling that is $ 4.00.

If sellers sink in out to charge a price of $ 4.00 per gallon, quantity demanded (QD) of the gas 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 maximal price; it does not preclude 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 force out be shown by using graph as follows: QUESTION 3 Susie receives an recompense from her parents of $ 10 per week. She spends her intact allowance on two goods: cans of hairspray and riffle apply. The price of a can hairspray is $ 2 and the price of a pack of bubble gum is $ 1. Draw...If you want to labour a full essay, prescribe it on our website: Ordercustompaper.com

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