PDF Notes: Baza_Vtor_kol

What is the time spent searching for someone to work with?

It is referred to as search activity.

What happens when demand for rental apartments increases?

The number of rented rooms increases.

How does a price ceiling affect the rental market?

It can create a shortage of available apartments.

What is the consequence of a price ceiling set below equilibrium?

It leads to excess demand.

What is a black market?

It is an illegal market where prices exceed legal limits.

What happens if a government imposes a rent ceiling above equilibrium?

The law will have no effect on the housing market.

What is the result of a rent ceiling below equilibrium?

It causes a shortage of rental units.

What is the effect of a price ceiling on consumer surplus?

It creates deadweight loss.

What is the likely outcome of a rent ceiling?

It may lead to a black market for housing.

What mechanism can allocate scarce housing when rent is not allowed?

Lottery systems can be used.

What does 'first come, first served' mean in housing allocation?

It prioritizes those on waiting lists.

What is the implication of discrimination in housing allocation?

It favors certain individuals based on personal interests.

What happens to the consumer surplus when a price ceiling is imposed?

It may increase for some consumers.

What is the relationship between marginal social benefit and marginal social cost in an unregulated market?

They are equal at equilibrium.

What is the effect of a price ceiling on the supply of rental units?

It reduces the supply of available units.

What is the expected outcome for Daisy and Donald in a rental market?

Donald will spend more time searching for an apartment.