SENTER The equilibrium rent in a town is $500 per month, and the equilibrium number of apartments is 100. The city now passes a rent control law that sets the maximum rent at $400. The diagram on the right summarizes the supply and demand for apartments in this city. Use this figure to complete the tables below. (enter your answers mathematically as the sum of the areas E.g., A+C-B. Simplify your answers.) Before Rent Control TABLE 1: Consumer Surplus Producer Surplus Social Surplus Price 500 400 A C F 60 B D 100 Quantity G

SENTER The equilibrium rent in a town is $500 per month, and the equilibrium number of apartments is 100. The city now passes a rent control law that sets the maximum rent at $400. The diagram on the right summarizes the supply and demand for apartments in this city. Use this figure to complete the tables below. (enter your answers mathematically as the sum of the areas E.g., A+C-B. Simplify your answers.) Before Rent Control TABLE 1: Consumer Surplus Producer Surplus Social Surplus Price 500 400 A C F 60 B D 100 Quantity G

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Question

The equilibrium rent in a town is $500 per month, and the equilibrium number of
apartments is 100. The city now passes a rent control law that sets the maximum rent
at $400. The diagram on the right summarizes the supply and demand for apartments in
this city.
Use this figure to complete the tables below. (enter your answers mathematically as the
sum of the areas. Eg., A+C-B. Simplify your answers.)
TABLE 1:
Before Rent Control
Consumer Surplus
Producer Surplus
Social Surplus
Price
500
400
A
C
F
60
B
D
100
D
Quantity
✓ ✓
G

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