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Fruit Fly Economist According to Frieda, the talking fruit fl y, “A rent-control law implemented today will simply redistribute income from property owners to consumers. I will never see any deadweight loss from the rent-control program.” a. After googling “fruit fl y lifespan,” draw a supply/demand graph to illustrate the logic of Frieda’s statement. b. Frieda’s statement is literally correct because… c. Contrast Frieda’s view with the view of Dumbo, the talking elephant. Draw Dumbo’s graph of the housing market, and show the the deadweight loss from rent control.
Chapter 15, Problem 9(choose chapter or problem)
Fruit Fly Economist
According to Frieda, the talking fruit fly, “A rent-control law implemented today will simply redistribute income from property owners to consumers. I will never see any deadweight loss from the rent-control program.”
a. After googling “fruit fly lifespan,” draw a supply/demand graph to illustrate the logic of Frieda’s statement.
b. Frieda’s statement is literally correct because…
c. Contrast Frieda’s view with the view of Dumbo, the talking elephant. Draw Dumbo’s graph of the housing market, and show the deadweight loss from rent control.
Questions & Answers
QUESTION:
Fruit Fly Economist
According to Frieda, the talking fruit fly, “A rent-control law implemented today will simply redistribute income from property owners to consumers. I will never see any deadweight loss from the rent-control program.”
a. After googling “fruit fly lifespan,” draw a supply/demand graph to illustrate the logic of Frieda’s statement.
b. Frieda’s statement is literally correct because…
c. Contrast Frieda’s view with the view of Dumbo, the talking elephant. Draw Dumbo’s graph of the housing market, and show the deadweight loss from rent control.
ANSWER:Step 1 of 4
Given data:
According to Frieda, the talking fruit fly, “A rent-control law implemented today will simply redistribute income from property owners to consumers. I will never see any deadweight loss from the rent-control program.”