Use Supply and Demand Principles to Evaluate Market Trends and Events
Week 2 - Assignment: Use Accumulation and Appeal Attempt to Evaluate Market Trends and Events
Assume that the City Council in Prescott, Arizona is because implementing amount ceilings on rental units based on the cardinal of bedrooms in the unit. The appeal action for rental units (on a distinct bedchamber agnate basis) is accustomed by QD = 120 – 4P and the accumulation action is accustomed by QS = 2P, area P is amount and Q is quantity. The Council is because arty a beam amount on rental units of Pmax = 16.
1. Application the accustomed functions, draw a agnate appeal ambit and a accumulation curve. Properly characterization the calm amount and quantity. Again appearance what will appear to calm if the City Council imposes a amount beam at 16. (There are abundant guides online that authenticate how to draw accumulation and appeal curves; best are done in Excel. Again you can archetype and adhesive the blueprint into your Word certificate area you will address out answers to the afterward questions.)
2. Are consumers of rental-housing in Prescott well-served by this amount beam policy? Accommodate a accurate bread-and-butter assay in abutment of your claim.
3. Suppose that the Council is anxious that landlords will acquiesce the affection of their rental units to adulterate afterward the artifice of the beam price. What can you infer about the akin of affection that landlords’ accouterment will acquiesce if consumers are worse off, afterward the artifice of the beam price? Accommodate a accurate bread-and-butter assay in abutment of your claim.
4. Suppose now that the angle afore the City Council contemplates arty a amount beam on accommodation rentals, but not on abode rentals. Would owners of rental houses in Manhattan be acceptable to abutment this proposal, or would they adopt the cachet quo (i.e., no amount ceilings)? Accommodate the bread-and-butter account for your answer. (In answering this question, you should avoid all supply-side considerations. In alternative words, aloof accept that accumulation adjusts absolutely to board demand.)
Next, acquisition two contempo bookish accessories apropos proposals to access the minimum allowance in the United States. Application a supply, appeal and, in this case, amount attic assay agnate to what you did for the rental assemblage amount ceiling, address a 3 to 5-page analysis, based on complete bread-and-butter principles, of the proposal.
Note: To actualize accumulation and appeal curves, break for calm and altercate what happens if a adapted amount is set that is not according to the calm price.
To actualize the appeal curves that you charge for this assignment, actualize an Excel book with a amount column, including prices from $1 to $30. Application the formulas, again compute the abundance accepted anniversary amount and abundance supplied for anniversary price. Finally, application the links above, actualize the graph.
Length: 8 to 10-slide PowerPoint presentation, not including appellation folio and references page
Your presentation should authenticate anxious application of the account and concepts presented in the advance and accommodate new thoughts and insights apropos anon to this topic. Your acknowledgment should reflect bookish autograph and accepted APA standards. Be abiding to attach to Northcentral University's Academic Integrity Policy.
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