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What is the new equilibrium price and quantity

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Reference no: EM132193824

Assume the apartment rentals in LA are monopolized by a single firm. Inverse demand for the rentals is given by P = 2000 - 2Q. The constant marginal cost per apartment is $100 per month. Demand is continuous.

Assume the government imposes a price ceiling of $800. What is the new equilibrium price and quantity and how big is the deadweight loss?

Reference no: EM132193824

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