Question

If departing tenants sell access to rent-controlled apartments, whi is likely to end up with the apartments? How else might scarce rent-controlled apartments be distributed?

1) the highest bidders will end up with the appartment, with the "economic rent" from the value of a rent controlled apt being split between the departing and new tenent.

2) how else might they be distributed? In a multitude of ways.
a) remove the rent controls and let the market distribute.
b) keep the rent controls but empower a government agency to do the distributing.
c) keep the rent controls but with limited and short leases. Re-distribute the apt after the end of the lease.
d) Mandate that tenents in rent-controlled meet some easily-measured condition.
e) impose a special or civic duty to tenents
f) impose a special tax on tenents.

Be creative and you could come up with additional methods.

Answer 1

(a) According to table 4.1, by how much would coffee sales decline if the price of coffee increased by 20 percent? (b) If Starbucks raised its coffee prices by the same amount, would sales decline by more, less, or the same amount?

Answer 2

problems
question 4