Question 2
In the graph below we model the long-term rental market (i.e. contrac
Question 2
In the graph below we model the long-term rental market (i.e. contract of 6 months or more), assuming it is perfectly competitive. Let’s try to model the impact that short-term rental platforms might have on this market. To do so, let’s compare a market without such platform (before) and a market after the platforms have been introduced. In the figures, the vertical axis r is the price, while Q is the quantity of rental accommodation.
The [ Select ] [“top-left”, “top-right”, “bottom-left”, “bottom-right”] figure best represents the introduction of short-term rental platforms. Their effect is to cause [ Select ] [“an increase”, “a decrease”, “neither an increase nor a decrease”] in rental prices and [ Select ] [“an increase”, “a decrease”, “neither an increase nor a decrease”] in rental accommodation.
Question 3
The Conversation article Australia has taken a ‘light touch’ with Airbnb. Could stronger regulations ease the housing crisis?Links to an external site.
mentions a measure taken by the city of Amsterdam. Let’s discuss the possible effects of such measure on the long-term rental market. In the figures below, we compare Sydney’s (SYD) market under its current policy for short-term rental platforms and under the alternative scenario where it implements the same policy as Amsterdam (AMS).
The city of Amsterdam introduced [ Select ] [“5 days limit”, “10 days limit”, “30 days limit”, “180 days limit”, “none of the above”] on short-term rentals whereas Sydney has [ Select ] [“5 days limit”, “10 days limit”, “30 days limit”, “180 days limit”, “none of the above”] . The [ Select ] [“top-left”, “top-right”, “bottom-left”, “bottom-right”] figure best represents the effect of introducing the same policy as Amsterdam. It would cause [ Select ] [“an increase”, “a decrease”, “neither an increase nor a decrease”] in rental prices and [ Select ] [“an increase”, “a decrease”, “neither an increase nor a decrease”] in rental accommodation.
PLEASE MAKE SURE TO EXPLAIN EACH ANSWER AS TO HOW YOU GOT IT SO I CAN UNDERSTAND.
