上海浦东公租房ANSWERS
1 The Market
1. Suppo that there were 25 people who had a rervation price of $500, and the 26th person had a rervation price of $200. What would the demand curve look like?
1.1. It would be constant at $500 for 25 apartments and then drop to $200.
2. In the above example, what would the equilibrium price be if there were 24 apartments to rent? What if there were 26 apartments to rent?What if there were 25 apartments to rent?
1.2. In the first ca, $500, and in the cond ca, $200. In the third ca, the equilibrium price would be any price between $200 and $500.
3. If people have different rervation prices, why does the market demand curve slope down?
1.3. Becau if we want to rent one more apartment, we have to offer a lower price. The number of people who have rervation prices greater than p must always increa as p decreas.腊八节古诗
4. In the text we assumed that the condominium purchars came
惊不惊喜意不意外from the inner-ring people—people who were already renting apartments.重庆市内景点
What would happen to the price of inner-ring apartments if all of the condominium purchars were outer-ring people—the people who were not currently renting apartments in the inner ring?
陌刀1.4. The price of apartments in the inner ring would go up since demand for apartments would not change but supply would decrea.
5. Suppo now that the condominium purchars were all inner-ring people, but that each condominium was constructed from two apartments. What would happen to the price of apartments?
1.5. The price of apartments in the inner ring would ri.
6. What do you suppo the effect of a tax would be on the number of apartments that would be built in the long run?
1.6. A tax would undoubtedly reduce the number of apartments supplied in the long run.
7. Suppo the demand curve is D(p) = 100−2p. What price would the monopolist t if he had 60 apartments? How many would he rent? What price would he t if he had 40 apartments? How many
would he rent?
发烧吃什么水果好
1.7. He would t a price of 25 and rent 50 apartments. In the cond ca he would rent all 40 apartments at the maximum price the market would bear. This would be given by the solution to D(p) = 100−2p = 40, which is p∗ = 30.
六年级女生8. If our model of rent control allowed for unrestricted subletting, who would end up getting apartments in the inner circle? Would the outcome be Pareto efficient?
1.8. Everyone who had a rervation price higher than the equilibrium price in the competitive market, so that the final outcome would be Pareto efficient. (Of cour in the long run there would probably be fewer new apartments built, which would lead to another kind of inefficiency.)
快乐点击
2 Budget Constraint
1. Originally the consumer faces the budget line p1x1 + p2x2 = m. Then the price of good 1 doubles, the price of good 2 becomes 8 times larger, and income becomes 4 times larger. Write down an equation for the new budget line in terms of the original prices and income.
2.1. The new budget line is given by 2p1x1 +8p2x2 =4m.
