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The elected officials in a west coast university are concerned about the explosive rents being charged to college students. The town council is complementing the imposition of $350 a month on apt in the city. An economist at the university estimates the demand n supply curve as QD= 5600-8p and Qs= 500+4p
Where P is the monthly rent, Q= #of apartments available for propose of analysis can be treated as identical
A) calculate the equilibrium price and quantity that would prevail with price ceiling
B) calculate the producer n consumer surplus at this equilibrium
C) what quantity will eventually be available if the rent ceiling is imposed?
D) calculate the gains or losses in consumer and or producer surplus
E) does the proposed rent ceiling result in net welfare gains? Would you advise the town council to implement the policy
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recent increases in rents have caused the citizens of elmville to vote for a rent ceiling of 1200. assuming all rental
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