Biology Forums - Study Force

Question 1.

Figure 4-5

Figure 4-5 shows the market for apartments in Springfield. Recently, the government imposed a rent ceiling of $1,000 per month.

Refer to Figure 4-5. With rent control, the quantity supplied is 200 apartments. Suppose apartment owners ignore the law and rent this quantity for the highest rent they can get. What is the highest rent they can get per month?

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$1,000

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$1,500

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$2,000

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$2,300

Question 2.

David Card and Alan Krueger conducted a study of fast-food restaurants in New Jersey and Pennsylvania. The study found that

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increases in the minimum wage had a very small impact on employment.

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there was a large reduction in employment of low-skilled workers when the minimum wage was raised in these states.

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increases in the prices of food have a greater effect on wage increases in New Jersey than in Pennsylvania.

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the earned income tax credit is more effective in raising the incomes of low-skilled workers than increases in the minimum wage.

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