Draw the demand and supply curves. With no rent ceiling, what is the rent and many apartments are rented? i. ii. With the rent ceiling, what would be the rent and how many apartments woul available for rent? Will there be a shortage or surplus in the rented apartment man Explain. If a black market develops after the rent ceiling is implemented, what would the bl market rent be? Explain your answer.
Draw the demand and supply curves. With no rent ceiling, what is the rent and many apartments are rented? i. ii. With the rent ceiling, what would be the rent and how many apartments woul available for rent? Will there be a shortage or surplus in the rented apartment man Explain. If a black market develops after the rent ceiling is implemented, what would the bl market rent be? Explain your answer.
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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Question

Transcribed Image Text:B. The table below shows the demand for and supply of rental housing in Kuala Lumpur. The
city government is considering imposing a rent ceiling of RM700 a month. Help the
government to analyze the effects of the proposed rent ceiling.
Quantity
Quantity
supplied
(units per
month)
Rent
demanded
(RM per month)
(units per
month)
1,200
1,000
500
600
100
700
800
200
800
600
300
900
1,000
400
200
400
500
1,100
600
i. Draw the demand and supply curves. With no rent ceiling, what is the rent and how
many apartments are rented?
ii.
With the rent ceiling, what would be the rent and how many apartments would be
available for rent? Will there be a shortage or surplus in the rented apartment market?
Explain.
i.
If a black market develops after the rent ceiling is implemented, what would the black-
market rent be? Explain your answer.
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