e130md1_Fall2007_1_Answers

e130md1_Fall2007_1_Answers - total . Middle/upper income...

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Econ 130 Midterm 1 Answer Key, Question 1 Short answers A) Landlord is a monopolist. Yes, imposing rent control could raise the quantity of rental housing. Example below: B) (upward sloping MC will be fine as well) S D Price under rent control Q P Q M P M MR Q rentcontrol Q P Actual MC MC to consumer Q’ Q* DWL
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C) Total private school attendance increases to Q
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Unformatted text preview: total . Middle/upper income attendance declines to Q mid/up. D) London charges a toll for cars to enter downtown. This promotes efficiency since too many cars on the road imposes an external cost (traffic congestion). Q P D D S 4000 or 5000 Q total Q* Q mid/up...
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e130md1_Fall2007_1_Answers - total . Middle/upper income...

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