« previous next »

Author Question: A rent ceiling set above the equilibrium rent efficiently allocates resources in the housing market. ... (Read 64 times)

ENagel

  • Hero Member
  • *****
  • Posts: 540
on: Jun 29, 2018
A rent ceiling set above the equilibrium rent efficiently allocates resources in the housing market.
 
  Indicate whether the statement is true or false

Question 2

In the market for bicycles, explain what happens to the supply and demand curves when there is an increase in the price of steel used to make bikes.
 
  What will be an ideal response?


welcom1000

  • Sr. Member
  • ****
  • Posts: 298
Reply #1 on: Jun 29, 2018
Answer to Question 1

FALSE

Answer to Question 2

An increase in the price of steel is an increase in the price of a resource used to make the good. As a result, the supply of bicycles decreases and the supply curve shifts leftward. There is no change to the demand, so the demand curve does not shift. The equilibrium price of a bicycle rises and the equilibrium quantity decreases.


Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
« previous next »
 

Did you know?

Amoebae are the simplest type of protozoans, and are characterized by a feeding and dividing trophozoite stage that moves by temporary extensions called pseudopodia or false feet.

Did you know?

Asthma attacks and symptoms usually get started by specific triggers (such as viruses, allergies, gases, and air particles). You should talk to your doctor about these triggers and find ways to avoid or get rid of them.

Did you know?

Autoimmune diseases occur when the immune system destroys its own healthy tissues. When this occurs, white blood cells cannot distinguish between pathogens and normal cells.

Did you know?

The people with the highest levels of LDL are Mexican American males and non-Hispanic black females.

Did you know?

Immunoglobulin injections may give short-term protection against, or reduce severity of certain diseases. They help people who have an inherited problem making their own antibodies, or those who are having certain types of cancer treatments.

Othmer’s Equilibrium Still Schematic Diagram Othmer’s Equilibrium Still Schematic Diagram
As the glass ceiling slowly cracks, women are gaining entry into the top positions of society. Shown ... As the glass ceiling slowly cracks, women are gaining entry into the top positions of society. Shown ...
Although crassly put by the cartoonist, behind the glass ceiling lies this background assumption. Although crassly put by the cartoonist, behind the glass ceiling lies this background assumption.
Write equilibrium constant expressions for the following reactions in terms of concentration: Write equilibrium constant expressions for the following reactions in terms of concentration:
Iraqi market Iraqi market
The Hardy–Weinberg equilibrium for autosomal genes The Hardy–Weinberg equilibrium for autosomal genes
Video: Covalent bonds - role in the body

For a complete list of videos, visit our video library