Assume that interest rates have recently risen, and housing shortages have created a rental crisis in Melbourne. In the absence of rent controls, the free forces of demand and supply will create the equilibrium levels. Draw a diagram to illustrate the equilibrium rental price of $1200 per month, and quantity of 4000 rental dwellings. What would be the effect if a rent ceiling of $1000 per month was imposed on the market? Show this in your diagram. In your opinion, should the rent control be implemented or should the free forces of demand and supply be allowed to determine equilibrium in the rental market. Explain your reasoning.
Assignment help 1216
Solution:
15% off for this assignment.
Our Prices Start at $11.99. As Our First Client, Use Coupon Code GET15 to claim 15% Discount This Month!!
Why US?
100% Confidentiality
Information about customers is confidential and never disclosed to third parties.
Timely Delivery
No missed deadlines – 97% of assignments are completed in time.
Original Writing
We complete all papers from scratch. You can get a plagiarism report.
Money Back
If you are convinced that our writer has not followed your requirements, feel free to ask for a refund.