Effect of rent control on supply/demand

Suppose that a large city is investigating the elimination of rent controls on housing at a time when the vacancy rate is extremely low-only 1 percent of all apartments in the city are vacant. Which of the following is most likely to occur if rent controls are eliminated? A) An increase in the demand for housing, followed by a decrease in the supply of housing. B) An increase in rents, perhaps followed later by an increase in the supply of housing. C) A decrease in rents and a decrease in the supply of housing. D) No change in rents, since price controls are usually set where supply and demand intersect. E) A decrease in the demand for housing, followed by a decrease in the s... click for more

Normal Goods

A good is defined as "normal" when consumers buy more of it when income increases and less of it when income decreases. For a normal good, the substitution effect of a price increase: A) pushes the quantity demanded down along with the income effect. B) pushes the quantity demanded down enough that the income effect cannot push demand higher. C) pushes the quantity demanded up, but not enough to dominate an income effect that ultimately pushes demand down. D) has an effect on the quantity demanded that is identical to the income effect. E) pushes the quantity demanded up along with the income effect.

Diminishing marginal returns

Diminishing marginal returns occur because: A) increasing amounts of a factor are added to fixed amounts of other factors of production. B) the marginal product of labor just equals the marginal utility of leisure. C) more workers employed in a plant will talk more and produce less. D) total product must eventually fall. E) returns to scale are diminishing.

Housing market

Why is the government concerned about the level of home ownership in the community? Suggest some economic and social factors?

Housing market intervention

Q1)Should the government intervene directly in the market for housing and to promote home ownership? Justify your answer. Consider some of the options available for intervention and explain their strengths and weakness. [SEE ATTACHED FILE 1 (OVERVIEW)TO SEE REPORT THIS QUESTION IS REFERRING TO]