A housing shortage results when
A) a tax is imposed on housing.
B) a rent ceiling below the equilibrium rent is imposed.
C) a rent ceiling above the equilibrium rent is imposed.
D) rents rise.
E) a rent floor below the equilibrium rent is imposed.
B
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Mpc + mps =
A) 0. B) 0.5. C) 1. D) 100.
A monopolist faces a demand curve Q = 120 - 2p and has costs given by C(Q) = 20Q + 100
a. Write the monopolist's profits in terms of the price it charges. b. Use the derivative (w.r.t. price) to determine the monopolist's profit-maximizing price. c. Now, derive the monopolist's inverse demand based on the demand equation above. Write out the monopolist's profits in terms of quantity. d. Use the derivative w.r.t. Q to determine the monopolist's optimal quantity. What price does the monopoly charge?