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Rental value is the fair market value of property while rented out in a lease. More generally, it may be the consideration paid under the lease for the right to occupy, or the royalties or return received by a lessor ( landlord ) under a license to real property . [ 1 ]
A price floor is a government- or group-imposed price control or limit on how low a price can be charged for a product, [21] good, commodity, or service. A price floor must be higher than the equilibrium price in order to be effective. The equilibrium price, commonly called the "market price", is the price where economic forces such as supply ...
In economics, economic rent is any payment to the owner of a factor of production in excess of the costs needed to bring that factor into production. [1] In classical economics, economic rent is any payment made (including imputed value) or benefit received for non-produced inputs such as location and for assets formed by creating official privilege over natural opportunities (e.g., patents).
This will tend to put downward pressure on the price to make it return to equilibrium. Likewise where the price is below the equilibrium point (also known as the "sweet spot" [3]) there is a shortage in supply leading to an increase in prices back to equilibrium. Not all equilibria are "stable" in the sense of equilibrium property P3.
Movement of the supply curve to increased supply leads to reduced price and increased quantity equilibrium. The long-run price elasticity of supply is quite high. George Fallis (1985) estimates it as 8.2, but in the short run, supply tends to be very price-inelastic. Supply-price elasticity depends on the elasticity of substitution and supply ...
[39]: 7 [40]: 1 [41]: 1 A 2019 study found that San Francisco's rent control laws reduced tenant displacement from rent controlled units in the short-term, but resulted in landlords removing 30% of the rent controlled units from the rental market (by conversion to condos or TICs) which led to a 15% citywide decrease in total rental units, and a ...
Short-term rental (STR) describes furnished self-contained apartments or houses that are rented for short periods of time. [1] They are usually seen as an alternative to hotels . "Short stay" rentals are an offshoot of the corporate housing market, [ 2 ] and are also offered by private owners and investors via online platforms such as Airbnb .
In the short run (and possibly in the long run), markets may find a temporary equilibrium at a price and quantity that does not correspond with the long-term market-clearing balance. For example, in the theory of " efficiency wages ", a labor market can be in equilibrium above the market-clearing wage since each employer has the incentive to ...