Instructions Price Ceiling Analysis Imagine a city implements a price ceiling on apartment rentals to make housing more affordable The equilibrium monthly rent without government intervention is $1,200, with 1,200 units of demand and supply The government sets a price ceiling at $800 Calculate the new quantity demanded and quantity supplied (assume demand increases to 1,500 units, while supply decreases to 1,000 units) Calculate the shortage created by the price ceiling Illustrate the changes on a supply and demand graph, marking the equilibrium price, price ceiling, quantities demanded and supplied, and identify the area representing deadweight loss Price Floor Analysis Consider a scenario where the government sets a price floor on wages (minimum wage) above the market equilibrium The equilibrium wage rate is $6 00 per hour, with demand and supply of labor at 400 units The government sets a price floor at $6 75, leading to a labor supply of 500 units and a demand of 300 units Calculate the surplus of labor (unemployment) created by the price floor On a graph, illustrate the equilibrium wage, price floor, and mark the quantities of labor demanded and supplied Highlight the deadweight loss Quota Limit Analysis Analyze a quota system implemented on sugar imports to protect domestic producers Without the quota, the equilibrium price is $1 50 per pound, with a demand and supply of 1,000,000 pounds The government sets a quota limiting imports to 900,000 pounds Calculate the new price of sugar if the demand price for 900,000 pounds is $2 00, and the quota rent (the difference between the demand and supply price) Represent the effect of the quota on a graph, showing the original and new equilibrium points, the quota limit, and the area of deadweight loss Requirements Provide detailed calculations for each part of the assignment Include properly labeled graphs for each scenario Conclude each section with a brief explanation of the economic implications, identifying which groups benefit and which are harmed by the government's intervention Submission Submit a written report containing your analysis, calculations, graphs, and conclusions Highlight the role of government interventions in markets and their impacts on economic efficiency

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Instructions: Price Ceiling Analysis : Imagine a city implements a price ceiling on apartment rentals to make housing more affordable. The equilibrium monthly rent without

Instructions:

Price Ceiling Analysis:
- Imagine a city implements a price ceiling on apartment rentals to make housing more affordable. The equilibrium monthly rent without government intervention is $1,200, with 1,200 units of demand and supply. The government sets a price ceiling at $800.
- Calculate the new quantity demanded and quantity supplied (assume demand increases to 1,500 units, while supply decreases to 1,000 units).
- Calculate the shortage created by the price ceiling.
- Illustrate the changes on a supply and demand graph, marking the equilibrium price, price ceiling, quantities demanded and supplied, and identify the area representing deadweight loss.
Price Floor Analysis:
- Consider a scenario where the government sets a price floor on wages (minimum wage) above the market equilibrium. The equilibrium wage rate is $6.00 per hour, with demand and supply of labor at 400 units.
- The government sets a price floor at $6.75, leading to a labor supply of 500 units and a demand of 300 units.
- Calculate the surplus of labor (unemployment) created by the price floor.
- On a graph, illustrate the equilibrium wage, price floor, and mark the quantities of labor demanded and supplied. Highlight the deadweight loss.
Quota Limit Analysis:
- Analyze a quota system implemented on sugar imports to protect domestic producers. Without the quota, the equilibrium price is $1.50 per pound, with a demand and supply of 1,000,000 pounds. The government sets a quota limiting imports to 900,000 pounds.
- Calculate the new price of sugar if the demand price for 900,000 pounds is $2.00, and the quota rent (the difference between the demand and supply price).
- Represent the effect of the quota on a graph, showing the original and new equilibrium points, the quota limit, and the area of deadweight loss.

Requirements:

Provide detailed calculations for each part of the assignment.
Include properly labeled graphs for each scenario.
Conclude each section with a brief explanation of the economic implications, identifying which groups benefit and which are harmed by the government's intervention.

Submission:

Submit a written report containing your analysis, calculations, graphs, and conclusions. Highlight the role of government interventions in markets and their impacts on economic efficiency.