CAS EC 201 Lecture Notes - Lecture 2: Budget Constraint, Demand Curve, Economic Equilibrium
15 Mar 2016
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This homework is due friday, january 29, in class: cities impose rent controls in order to reallocate surplus value from apartment owners to apartment renters. Suppose newman is the unscrupulous superintendent (he works for the owner of the building but does not own the building) of a rent controlled apartment building and he is in charge of renting out a vacant apartment. There are are three people interested in renting the apartment. ,000 a month to rent the apartment: given the information above, who should be given the apartment, all things equal, newman would prefer kramer to get the apartment, but remember that. Newman is unscrupulous and willing to take a bribe. How large a bribe is each potential candidate willing to pay to lease the apartment for a year: assume that bribes are offered and the person who offers newman the highest bribe gets the apartment.
