The dagram below shows the market for rental apartments. Suppose the government mposes arent cortrol w that sets the maximum monthly rent at S400 a Identify the quantity of apartments demanded and the quantty of apartments suopled et a tonroled rent of S400 Instructions: Use the tool provided Op to indicate the quantty demanded when there is a coeoed ental pece of $400 Then ise the tool provided Os'to indicate the quanety Supplied when tthere is a controled renta price of $400 $1.600 Toole $1.400 $1.200 000 S600 $400 $200 50 100 150 200 250 300 350 400 450 500 Quantity of housing (unts) Suppose that everyone who had a lease for a rent-control unt sublet that une in a shadow market at the highest price they could receive bin this case, the highest price they could charge is a rental price of C lect)
The dagram below shows the market for rental apartments. Suppose the government mposes arent cortrol w that sets the maximum monthly rent at S400 a Identify the quantity of apartments demanded and the quantty of apartments suopled et a tonroled rent of S400 Instructions: Use the tool provided Op to indicate the quantty demanded when there is a coeoed ental pece of $400 Then ise the tool provided Os'to indicate the quanety Supplied when tthere is a controled renta price of $400 $1.600 Toole $1.400 $1.200 000 S600 $400 $200 50 100 150 200 250 300 350 400 450 500 Quantity of housing (unts) Suppose that everyone who had a lease for a rent-control unt sublet that une in a shadow market at the highest price they could receive bin this case, the highest price they could charge is a rental price of C lect)
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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Transcribed Image Text:The diagram below shows the market for rental apartments. Suppose the government imposes a rent control law that sets the
maximum monthly rent at $400.
a Identify the quantity of apartments demanded and the quantity of apartiments supplied at a controled rent.of $400
Instructions: Use the tool provided 'Op' to indicate the quantty demanded when there is a controted rental pnce of $400 Then use
the tool provided Qs'to indicate the quantity supplied when there is a controled rental price of $400
$1600
Toole
eBoo
$1,400
Suoply
$1.200
.000
S800
$600
$400
Demand
S200
50 100 150 200 250 300 350 400 450 500
Quantity of housing (unita)
Suppose that everyone who had a lease for a rent-control unit sublet that unit in a shadow market at the highest price they could
receive
b. In this case, the highest price they could charge is a rental price of (Cick to select)
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