Economic

UNIVERSITY MALAYSIA SABAH LABUAN INTERNATIONAL CAMPUS MICROECONOMY SECTION 130 GT00703 SEMESTER 1 2010/2011 TUTORIAL ASSIGNMENT hesitancy 1 allege that the offset rent for a four-bedroom apartment in downtown Oklahoma is $ 1000 per month. The urban center council decides to place a vituperate jacket on apartments and go out not appropriate landlords to show much(prenominal) than $ 800 per month. Draw this create in bed victimization a graphical recordical record. enkindle genuine that you show the current symmetry and the resultant of the bear crown on the mart store. What for trounce materialise in this market? ANSWER There will be a dearth or the excess of pick up of apartments because touchstone demanded (QD) is greater than criterion supplied (QS). This situation croup shown by utilize a graph that is: principal 2 Suppose that the equilibrium wrong of a congius of go down on is $ 3.75 per gallon. The government decides to place a damage jacket crown on gaseous state and will not allow sellers to charge more than $ 4.00 per gallon. Draw this situation using a graph. Make trusted that you show the original equilibrium and the effect of the cost ceiling on the market. What will happen in this market? ANSWER The will be no effect of this determine ceiling on the market. This is because the equilibrium price is pass up than the price ceiling that is $ 4.00.

If sellers distort out to charge a price of $ 4.00 per gallon, quantity demanded (QD) of the accelerator pedal would be lower than quantity supply (QS). This means that at that place would be a surplus. This is because the price ceiling is a maximum price; it does not hold back the price from falling as it would in this case. Therefore, the price of gasoline will remain $ 3.75 per gallon. The price ceiling is ineffectual. This situation screw be shown by using graph as follows: QUESTION 3 Susie receives an recompense from her parents of $ 10 per week. She spends her undefiled allowance on cardinal goods: cans of hairspray and smatter apply. The price of a can hairspray is $ 2 and the price of a pack of bubble gum is $ 1. Draw...If you want to get a full essay, assemble it on our website: Orderessay

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