Show the effect of a rent ceiling in house market suppose


Using appropriate diagrams,

a. Show how a monopolistic firm can achieve to obtain supernormal profit.

b. Show that a unit tax imposed on the good produced by a monopolist decreases the monopoly profit

c. Show the effect of a "rent ceiling" in house market. Suppose that the house market is initially at the equilibrium, what will be the short and the long run effects of an increase in demand if the initial equilibrium rent level kept as a rent ceiling.

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Microeconomics: Show the effect of a rent ceiling in house market suppose
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