Demand : P = 2700 – 0.12q
Supply : P = -300 + 0.12q
a. if the local authority can enforce a rent-control law that sets the maximum monthly rent at $900, will there be a surplus or a shortage ? of how many units will this be ? and how many units will actually be rented each month ?
b. suppose that the goverment decides to implement a policy to keep out the poor. it declares that the minimum rent can be changed is $1,500 per month. if the goverment can enforce that price floor, will there be a surplus pr a shortage ? of how many units will this be ? and how many units will actually be rented each month?
c. suppose that the goverment wishes to decrease the market equilibrium monthly rent to $900 by increaseing the supply of housing. assuming that demand remains unchanged, find the new equilibrium quantity and new inverse supply curve