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The rent control agency of New York City has found that market demand is QD=100-5P With quantity measured in tens of though sands of apartments and price, the monthly rental rate, measured in hundreds of dollars. The city's Board of Realtors acknowledges that this is a good estimate of demand and has shown that the supply of existing apartments is: QS=50+5P
a) If both the rent control agency and the board of realtors are right about demand and supply, what is the free market equilibrium price (that is, the price where demand equals supply)?
b) What is the free market equilibrium quantity?
c) What is the consumer surplus?
d) What is the producer surplus?
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