Assignment1 - ASSIGNMENT 1 Economics 203 Fall 2011 Due:...

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ASSIGNMENT 1 Economics 203 – Fall 2011 Due: 3:00pm Oct 7, 2011 in the Econ 203 A01 assignment box. The assignment is out of 100 marks and counts towards 9% of your final grade. If you work with others, please indicate their names in the top right-hand corner of your assignment (you will not be penalized). In any event, write up the work on your own. Copying will be considered cheating . Section 1: Supply and Demand. Question 1 (20 marks): The demand and supply for apartments in Victoria are given by the following equation (Demand) P = 900 – Q and (Supply) P = 2Q. a) Compute the equilibrium price, quantity (of apartments) traded, consumer and producer surplus in Victoria. b) The government imposes rent control at P = $400. Compute the excess demand if exists. c) Suppose now that there is a shift in supply for apartments. The new supply curve becomes P = Q. Compute the new excess demand and the deadweight loss associated with a rent control of P = $400. d)
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This note was uploaded on 01/27/2012 for the course ECON 204 taught by Professor Beryl li during the Spring '11 term at University of Victoria.

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Assignment1 - ASSIGNMENT 1 Economics 203 Fall 2011 Due:...

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