problem1. Why does rent control result in a shortage of rental units?
problem2. How does price elasticity of demand affect how much of a tax is passed on to the consumer and how much is absorbed by seller? Show result with graphs.
problem3. Why can monopolistic firms make economic profit in the short run not in the long run? Elucidate and demonstrate graphically.
problem4. Your brother-in-law wants to borrow $1000 from you but he has a fit when you tell him he will have to pay you the same interest on loan that the bank offer you. Are you justified? Why or Why not?
problem5. Throughout the 1930s Jewish fighters dominated boxing. From the around 1975 till the present, blacks have dominated basketball. Elucidate the cause(s) underlying these two situations.