After watching The Hudsucker Proxy clip, discuss the following:
a) What shift factor was at play in this scene?
b) How did it affect the equilibrium price and quantity?
c) Think of a time in your life where your demand was impacted by a shift factor and describe it using the economics we have covered.
Rent control is an example of a price ceiling. Price ceilings keep prices low for consumers. We can clearly see that sellers (landlords in this case) are worse off. Consider if there is an argument to be made that consumers are worse off, too.
a) After watching the Seinfeld video clip, discuss how some consumers are made better off and some are not in a rent-control situation.
b) What kinds of rationing mechanisms would develop to help allocate the few apartments that are available?
c) In your opinion, do the benefits of rent control outweigh the costs?
MUST BE IN YOUR OWN WORDS and WILL BE RAN THROUGH TURNITIN
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