Price Control
In the space provided
(1) Explain the functionality of
prices
(2) graph an unregulated apartment market. Please label
the supply curve, market demand, equilibrium point as (a), price
equilibrium as $400, and quantity equilibrium as
1,000.
(3) Now assume the government steps in and sets a price
ceiling (rent Control). Draw this line, label it (Pc), and detail
Consumer surplus, Producer Surplus, and deadweight
lost.