Q4. Suppose that the Randwick council decides to introduce rent control to lower cost of living ofUNSW students. It imposes a binding price ceiling in the rental apartment market. Which of thefollowing are true?
Q5. If the demand curve is perfectly inelastic (a vertical line) or the supply curve is perfectly elastic (ahorizontal line), then the burden of a per unit tax imposed on sellers falls
Q6. In the market for onions, quantity demanded is given by Q = 40 – 2P, and quantity supplied isgiven by Q = 2P, where Q represents kg of onions.Suppose that the government imposes a price floor equal to $12. This will cause producer surplus to
Q7. Consider a market where demand is given by P = 16 – Q, and quantity supplied is given by P =Q/3.If the government imposes a $4 per-unit tax on producers, the final prices paid by consumers andreceived by producers (after paying the tax) are
Q8. In the market for pencils, demand is given by P = 16 – 2Q, and quantity supplied is given by P = 4+ Q.If the government provides a $3-per-unit subsidy to pencil producers, the cost of the subsidy to thegovernment will be