Rod is 40 years old and plans on retiring at age 62 and living until age 90. assume that he currently earns $110,000 and his wage replacement ratio is 72 percent. social security will provide $20,000 (in today's dollars) in retirement benefits per year. inflation is expected to be 3 percent and rod can earn 6 percent return on his investments. find the amount rod will need to have saved by day one of retirement.

the answer is "b.the increased supply will create a surplus. "

the essential thought behind price controls is straightforward - utilize the power of law to modify the equilibrium of a market. for instance, the legislature may choose that the steel business needs to survive, and in this way pass a law to set a value floor on steel. this implies all steel sold must offer at or over the floor value, which must be set over the equilibrium cost for it to have any impact. the switch could likewise happen - the administration can choose that steel is excessively costly and set a value roof underneath its equilibrium value, with the goal that all steel must be sold at or beneath that ceiling.