The NSW government is worried that renters in Sydney are paying too much money on rent. Given this, they decide to introduce a price ceiling in the rental market that states that landlords cannot charge more than $1500 per month for rent to tenants. After this policy change, the market price of rental housing will be $ per month and the quantity of housing rented will be units (in '000s). There will be a of housing equal to units (in '000s).

True or false: Any price ceiling above $2000 per month will be a binding price ceiling in the Sydney rental market.

Market equilibrium rental price is $ per month.     Market equilibrium quantity is apartments.b. If the local government can enforce a rent-control law that sets the maximum monthly rent at $1,500, will there be a surplus or a shortage?     .     Of how many units?     apartments per month.

One of most common and significant financial decisions people make is whether to buy or to rent a home. In Melbourne, a family-sized home in a suburb within 20km of the CBD costs roughly $1 million and requires maintenance costs of about $8000 per year, growing by 4% per annum. By comparison, the annual rent for a similar home is approximately $40,000. To purchase, a buyer generally pays a 20% down payment on the purchase price, as well as a stamp duty (tax) of 5.5% payable to the state government. Loans are currently available at about 5% interest per annum per on 30-year loans.

Total development costs are $400/SF. Investors are willing to pay property prices of $10 per dollar of current net rental income. What is the ‘‘replacement cost rent’’ in this market?

__________ is not a fixed cost.a.monthly rent of $1,000 contractually specified in a one-year leaseb.an insurance premium of $50 per year, paid last monthc.an attorney's retainer of $50,000 per yeard.a worker's wage of $15 per hour