Paper details:HW Assignment 4 – Disequilibrium (MLO.3-4)
Answer each the following questions with a graph and an analysis, starting with the initial equilibrium and then showing how the event generates a price ceiling or price floor. Make sure to include the winners in a losers in your graph and your analysis. This should look similar to the graphs and analysis that I present in the Disequilibrium power point lecture. Again, make sure to answer each question with its own separate graph that includes supply and demand with its equilibrium price and quantity (labeled as P1 and Q1) and then draw the price ceiling or floor that
generates the shortage or surplus and the winners and losers. The graph is worth 1/2 the points and the analysis is worth 1/2 the points. This will also be on the Supply and Demand test.
Due by 23:59 on Firday Week 2.
1. Can you explain the practice of scalping tickets for major sporting events in terms of market shortages? How else might tickets be distributed? (The graph is worth 10 points, the analysis is worth 10 points).
2. If rent controls are so counterproductive, why do cities impose them? How else might the housing problems of poor people be solved? (The graph is worth 10 points, the analysis is worth 10 points).
3. Who is harmed by rent controls? Who is helped? The winners graph and analysis is worth 10 points, the losers graph and analysis is worth 10 points).
4. What would happen in the apple market if the government set a minimum price of $2.00 per apple? What might motivate such a policy? (The graph is worth 10 points, the analysis is worth 10 points).
5. Graph and explain what happens when the government imposes a minimum wage for workers? Does this create a surplus or shortage of workers? Make sure to graph the winners and losers and to discuss an alternatives (The graph is worth 10 points, the analysis is worth 10 points).