 | Economics 14/e McConnell | |||||
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| Economics 14/e McConnell | |||||
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Chapter 20 Web-Based Questions
20-16 Web Based QuestionsK mart – Determinants of Demand Elasticities and "Blue Light Specials" Generally the elasticity of demand for a product will be greater (a) the larger the number of substitutes (b) the greater the portion of income and item takes and (c) the more the item is a non-necessity. K mart http://www.kmart.com/ posts a weekly sales circular on selected merchandise. K mart must conclude that demand for these Blue Light Specials is elastic: The decrease in price will increase total revenue. Check out this week’s specials and for each item score 1 point for meeting the criterion of each determinant above. How many specials score a 3? Do any score )? Why would K mart include any item which scored less than a 3?
20-17 Web Based QuestionsNew York Apartments – The Impact of Price Ceilings In New York City rent control was enacted during World War II and then maintained by New York City. In 1997 there were approximately 71 000 rent controlled apartments in New York City. Visit Tenant Net http://www.tenant.net/ and NYC Rent Guidelines Board http://www.nycrgb.com/ and find out the difference between "rent control" and "rent stabilization" in New York City. Are both price ceilings? What has been the impact of such controls? Are rent controls increasing or decreasing?
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