Where is supply more elastic, Las Vegas or San Francisco? In 2009 a popular proposal to...

  

Transcribed Image Text:

Where is supply more elastic, Las Vegas or San Francisco? In 2009 a popular proposal to deal with the fall in housing prices was for the federal government to raise the demand curve for houses by offering very low interest rates and refinancing opportunities; some proposals were for the federal government to pay most or all of mortgages for 10 years for home purchases. What would these proposals have done to housing prices in San Francisco? What would they have done to home construction in San Francisco? What would they have done for home prices in Las Vegas? What would they have done for home construction in Las Vegas? Draw a diagram. 2. In the early 1990s, the State of New Jersey was facing a budget crunch. The governor then (who is now running for mayor of Jersey City) proposed that the State place a sales tax on truck tires sold in New Jersey. What do most people who are in the market for truck tires (the demand side) have in common? How big is New Jersey in area, as states go? What was the likely incidence of the tax-would it have been mainly on sellers of truck tires (the supply side) or buyers of truck tires (the demand side)? Explain why. Use your answers to the first two sub-questions. When this tax was enacted, proponents multiplied the number of truck tires sold in NJ in the previous year by the amount of the tax to estimate the revenue it would yield. How do you think the actual revenue compared with the projection? 3. Between the early 1970s and the 1990s in the US, the proportion of women who were working outside the home (the labor force participation rate) grew considerably. There was no comparable change in the labor force participation rate for men. At the same time, women's wages grew faster than men's wages. The rise in women's labor force participation caused a great deal of discussion because it seemed to be both culturally significant and surprising. When polled, women graduating from high school in the late 1960s and early 1970s said that they planned to be spend a lot of their lives at home and not in the labor force; it turned out that they spent much more time at work outside the home than they expected to or than their mothers had. Commentators advanced many possible causes for the growth in women's labor force participation. A list of some of these possible causes is below. For each of these reasons, explain whether it would have moved the demand curve for women's labor outside the home, or the supply curve, which direction it would have moved the relevant curve, and why-a sentence at most. a. Women's liberation and greater desire of women to get out and not be stuck at home b. Contraception and the legalization of abortion c. Easier divorce laws and diminishing stigma of divorce d. Reduction in the proportion of jobs requiring brawn and increase in the proportion of jobs requiring brains e. Widespread adoption of technologies reducing the amount of time required to maintain houses, like washing machines and driers, microwave ovens, fast food restaurants, microwaveable meals (instant oatmeal, for instance), fast light vacuum cleaners, electric brooms, and so on. f. Increasing presence of commercial day care enterprises g. Increasing unwillingness of employers to discriminate against women in hiring, and stepped up enforcement of the Civil Rights Act of 1964, which prohibited discrimination on the basis of sex h. Decreasing stigma attached to families with kids where both parents worked in the market 4. Was the main driver of the rise in women's labor force participation a shift in the demand curve or a shift in the supply curve? Explain what evidence supports your conclusion. Which set of reasons in question 3 were the main drivers of this phenomenon? Explain what evidence supports your conclusion. Where is supply more elastic, Las Vegas or San Francisco? In 2009 a popular proposal to deal with the fall in housing prices was for the federal government to raise the demand curve for houses by offering very low interest rates and refinancing opportunities; some proposals were for the federal government to pay most or all of mortgages for 10 years for home purchases. What would these proposals have done to housing prices in San Francisco? What would they have done to home construction in San Francisco? What would they have done for home prices in Las Vegas? What would they have done for home construction in Las Vegas? Draw a diagram. 2. In the early 1990s, the State of New Jersey was facing a budget crunch. The governor then (who is now running for mayor of Jersey City) proposed that the State place a sales tax on truck tires sold in New Jersey. What do most people who are in the market for truck tires (the demand side) have in common? How big is New Jersey in area, as states go? What was the likely incidence of the tax-would it have been mainly on sellers of truck tires (the supply side) or buyers of truck tires (the demand side)? Explain why. Use your answers to the first two sub-questions. When this tax was enacted, proponents multiplied the number of truck tires sold in NJ in the previous year by the amount of the tax to estimate the revenue it would yield. How do you think the actual revenue compared with the projection? 3. Between the early 1970s and the 1990s in the US, the proportion of women who were working outside the home (the labor force participation rate) grew considerably. There was no comparable change in the labor force participation rate for men. At the same time, women's wages grew faster than men's wages. The rise in women's labor force participation caused a great deal of discussion because it seemed to be both culturally significant and surprising. When polled, women graduating from high school in the late 1960s and early 1970s said that they planned to be spend a lot of their lives at home and not in the labor force; it turned out that they spent much more time at work outside the home than they expected to or than their mothers had. Commentators advanced many possible causes for the growth in women's labor force participation. A list of some of these possible causes is below. For each of these reasons, explain whether it would have moved the demand curve for women's labor outside the home, or the supply curve, which direction it would have moved the relevant curve, and why-a sentence at most. a. Women's liberation and greater desire of women to get out and not be stuck at home b. Contraception and the legalization of abortion c. Easier divorce laws and diminishing stigma of divorce d. Reduction in the proportion of jobs requiring brawn and increase in the proportion of jobs requiring brains e. Widespread adoption of technologies reducing the amount of time required to maintain houses, like washing machines and driers, microwave ovens, fast food restaurants, microwaveable meals (instant oatmeal, for instance), fast light vacuum cleaners, electric brooms, and so on. f. Increasing presence of commercial day care enterprises g. Increasing unwillingness of employers to discriminate against women in hiring, and stepped up enforcement of the Civil Rights Act of 1964, which prohibited discrimination on the basis of sex h. Decreasing stigma attached to families with kids where both parents worked in the market 4. Was the main driver of the rise in women's labor force participation a shift in the demand curve or a shift in the supply curve? Explain what evidence supports your conclusion. Which set of reasons in question 3 were the main drivers of this phenomenon? Explain what evidence supports your conclusion.

Answer rating: 100% (QA)

1 Supply Elasticity in Las Vegas and San Francisco To determine which city has a more elastic housing supply we need to consider factors such as the availability of land zoning regulations constructio... View the full answer