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Question

 3.(a) Would the short-run elasticity of supply for a football stadium be elastic, inelastic, perfectly elastic,

or perfectly inelastic? Explain. 

(b) Would it be the same for the long-run elasticity of supply? Why or why not?


4. (a) What happens to consumer and producer surplus after a rent control is established? Do they increase or decrease? Explain.

b) What happens to total welfare? Be sure to include the concept of deadweight loss in your explanation.

Top Answer

Answer 3: (a) The short-run elasticity of supply for a football stadium would be perfectly inelastic in short-run because in... View the full answer

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a
Supply \ It
Dut
Rent ceiling
P.S
Demand
: Quantity
Rent Control is set below equilibrium
peuce which causes increase is
consumer surplus & decrease in
producer suplies.
b
Total welfare of...

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