CYAN MATTHEWS

ECON ASSIGNMENT
Article 1:
1.What is the government’s rationale for imposing rent controls or rent ceilings in some cities?
The government rationale for imposing rent controls or rent ceilings in some cities is to try and
stop landlords from increasing there rent so high that residents can afford it and are forced to
move out.

2. Based on the information in the news article, why are the landlords increasing rents in Toronto
apartments beyond the cap stipulated by the Government?
Landlords use the excuse of maintenance that needs to be preformed in the apartments therefore
they have to increase the rent over the governments cap in order to fix the issue, however some
tenants state that sometimes the issue are never resolved.

3. Do you favor rent control? Give reasons in support of your answer.

I do support rent control because it prevents people from being pushed out of there homes and
allows them to live where they please at an affordable cost. With rent control in place many
people who are lower/middle class can have a choice where they want to live not based
completely off of the prices of rent in the areas they are interested in.

4. Could you suggest two/three better policies that could improve access to housing for low-
income households?
Some polices that could be put into place are, government owned housing similar to subsidized
housing, and increasing the amount of money given for child tax benefit. With government
owned housing, people who make a certain amount should have the option to be given a place in
government owned housing therefore it would help the families quality of life, as well the home
renter wouldn’t have to stress about there rent increasing. It is very common to have families that
can not afford the living cost in some areas, by increasing the amount of child tax benefit it can
assure that parents would be able to provide a roof over their child/children’s head.

Article 2:
1.What is the price of a one-day ticket to the Magic Kingdom?
The price of the one-day ticker at the Magic Kingdom is $105.
CYAN MATTHEWS

2. Given the income elasticity of demand how do we know if a trip to Disney World is a normal
good or an inferior good?
We know that the price of a trip to Disney World is a normal good because the demand for going
to Disney World is still there even if the price increases. In other word families typically
consider Disney World as a must go to vacation and families will still go even if the prices rise
because it is almost an expectation to go.

3. The news article tells us that with ticket prices rising, revenue is increasing. What does this tell
us about the price elasticity of demand of a trip to Disney World?
This tell us that the price elasticity of demand of a trip to Disney World is inelastic, because
although the price of the trip to Disney World increases, the buyers habits stay the same.
Therefore, the consumer will still buy the product no matter the price.