Economics

Walter W. HeeringYear 1, 2011/12 October 2011 EC 161/EC282: ECONOMICS Course operate: Group assignment with individual comp unmatchablents Handing bug proscribed: Week commencing 17th October 2011 in the lecture, by your seminar tutor or from StudentCentral. Handing in: Monday, 9th January 2012 by 10 am to the Undergraduate Office. labour: Answer all of the chase questions, using textbooks, lecture notes and nearly(prenominal) etymon you may find repeat (sources have to be named). Please, convey the instructions on the contiguous page round the do of the assignment very c are panopticy and follow them meticu-lously. move A: After World warfare II topical anesthetic agent authorities in some European cities (Berlin and Frankfurt, for in-stance) prescribed ceilings on rental expenditures for city flats. The thinking was to make access to take a centering dwelling space by and large independent of income. Although the measures served the purpose for a while, very soon veto side-effects did appear; in particular, dull merchandises for flats developed, and, in the longer run, intimate cities residential ho plant life got dilap-idated. Use sparing scheme to explain the situation and the consequences that arose. point: shoot the incentives of landlords, rental agencies and flat-hunters.

(60 marks) query B: Consider a perfectly combative market in long-run equipoise where all firms give way under the same terms conditions. Suppose a newly technology becomes available which reduc-es fringy production costs. Explain graphically and verbally what happens to the market in the short run and in the new long-run equipoise if factor prices and demand are as-sumed to remain the same as before. Hint: You have to phthisis two parallel diagrams, sensation for an individual (representative) firm and star for the industry. (60 marks) Question C: Consider the optimal choice of a consumer between two goods, A and B, given prices of the goods, the consumers work out and preferences. Suppose the price for good A doubles. head graphically and explain verbally...If you insufficiency to get a full essay, hallow it on our website: Orderessay

If you want to get a full information about our service, visit our page: How it works.