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P of apartments 10,000 At S 8,000 F Supply Curve = Marginal Cost 5,000 3,DO0 P 1,000 C D Demand Curve = Marginal Benefit 20,D00
P of apartments 10,000 At S 8,000 F Supply Curve = Marginal Cost 5,000 3,DO0 P 1,000 C D Demand Curve = Marginal Benefit 20,D00 40,000 80,DOD Q of apartments8. Gains and losses of this government intervention a. How many tenants received an apartment at the lower rent as a result of the intervention? 5 pts. b. How many fewer apartments were available as a result of the intervention? 5 pts. c. Identify the new consumer surplus area by letters 5 pts. d. What is the dollar value of consumer surplus after the intervention? 5 pts Show computation here: e. Identify the new producer surplus area by letters 5 pts. f. What is the dollar value of producer surplus after the intervention? 5 pts. Show computation here: g. Identify the deadweight loss area by letters after the intervention 3 pts. h. What is the dollar value of the deadweight loss after the intervention? 5 pts. Show computation here: i. Identify the rectangle, by letters, of the incurred search cost to society? 3 pts. j. What is the dollar value of the incurred search cost to society? 5 pts. Show computation here: 9. Compute the percentage change in consumer surplus before and after government intervention 5 pts. Show computation here: 10. Compute the percentage change in producer surplus before and after government intervention 5 pts. Show computation here
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