MGTA01H3 Lecture : Chapter 6 Thursday October 27.docx

• School: UTSC
• Department: Management (MGT)
• Course: MGTA01H3
• Professor: ,

Document Summary

A shortage other mechanism will kick in to offshore this method. Shortage of apartment units because the supply is decreased because of the shortage. From the shortage unitl the surplus is the black market price for people to rent an apartment which is 1200 which is an extra 400. Owner of app can offer a 400 increase because of the shortage and the demand. Search activity: the time spent looking for someone with whom to do business. A rent ceiling does not help because of the shortage and the fact that now the black market can make it more expense because its more expensive than the equilibrium price. Dead weight loss is the loss of production the marginal benefit exceeds the marginal cost the under supply of appartments these renters probably rebnting the excess aparements to commercial property. Which shifts industry and causes a dead weight loss.