ECON 336 Lecture Notes - Lecture 8: Perfect Competition, Oligopoly, One-Child Policy

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yellowcicada248

31 Oct 2011

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When in late 1990s the government allowed people to purchase homes, some people jumped in and purchased more than one home, and have made big capital gains. Recently, this has raised the specter of a housing bubble . Can the government prevent the bubble from bursting: we have not heard the last about the housing issue. Get a bibliography and go to him then. The industrial sector: the next 40 slides deal with topics directly or indirectly related to china"s industrial sector, after a couple of slides on agriculture and rural industry (tve"s), we turn to: industrial organization analysis. China"s railroads the development of a hi-tech sector the energy sector rare earth minerals: these provide an analytical framework and a sample of issues related to the industrial sector. In the socialist era (1949-1978) heavy industry promoted on a base that remained heavily agricultural. Econ 336: but with reform, tve"s blossomed, and so did light , labour-intensive manufacturing industry.

Related Questions

One key in a "housing bubble" is that the supply of housing must be relatively inelastic when prices are rising. That is, if the quantity supplied increases rapidly whenever house prices rise, price increases will remain small. Many have suggested government policies to increase the elasticity of supply. What specific policies might hold prices down when demand increases, explain?

sapphireelk315

Consider the Smith family who has the following demand for rental housing (q, measured in square feet):

q = 0.5*(y/p),

where y is the Smith family income and p is the price of housing per square foot. The Smith's income is $2000 per month and initially, the price of housing is $2 per square foot.

a) If the Smiths are operating on their demand curve, how much housing are they consuming?

b) How much is the Smith family's monthly rent? How much does the Smith family spend on other consumption?

c) Starting from the initial equilibrium, the government now grants the Smiths a proportional rent subsidy with Î² =0.5. How much housing does the Smith family purchase give the subsidy?

d) What is the gross market rent per month paid by the Smith family? What is the net rent (after deducting the subsidy) paid by the Smith family? How much does the Smith family spend on other consumption in its new equilibrium?

e) What is total dollar outlay of the government for the Smith's housing subsidy per month?

plumelephant645

5. Consider the following changes in the macroeconomy. Show how we can explain the effect using the IS curve, and explain how and why GDP is affected in the short run.

(a) The government offers a temporary investment tax credit: for each dollar of investment that firms under- take, they receive a credit that reduces the taxes they pay on their income.

(b) A booming economy in Europe leads to an unexpected increase in demand for U.S. goods by Europeans.

(c) U.S. consumers become infatuated with anything and everything made in New Zealand; as a result they increase their imports from New Zealand.

(d) A housing bubble bursts (sound familiar?), so that housing prices fall by 20% and new home sales drop sharply.

ECON 336 Lecture Notes - Lecture 8: Perfect Competition, Oligopoly, One-Child Policy

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