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You are a policy maker and you are given a proposal to add a rental price ceiling of C on the rental price of apartments
- You are a policy maker and you are given a proposal to add a rental price ceiling of C on the rental price of apartments in DC.
- Define price ceiling.
- Show the initial equilibrium price and quantity and the new equilibrium price and quantity. Explain.
- Is there a shortage or surplus of apartments? How do you know?
- What happens to consumer surplus, producer surplus, and DWL?
- As a policy maker, do you think rental price ceilings are a good idea? Explain why or why not using the outcomes you found.
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A price ceiling is a governmentimposed limit on how high a price can be charged for a product or ser...
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Microeconomics An Intuitive Approach with Calculus
Authors: Thomas Nechyba
1st edition
538453257, 978-0538453257
