1. At the market equilibrium, what is the quantity demanded of rental units? What is the quantity supplied of rental units? (14 points) QD: 2. Calculate the producer surplus and consumer surplus in this market if the price was currently at the market equilibrium: (10 points) Producer surplus: Consumer surplus: 3. Suppose the local government decides to enact a price ceiling of $1,000. Draw this price ceiling on your graph and label it. (10 points) 4. Will this $1,000 price ceiling cause excess demand, excess supply, or have no effect on the market? Is this a binding price control? How do you know? (10 points) 5. Label the deadweight loss that results from the price ceiling as "DWL" on your graph (HINT: Think about the definition of deadweight loss. What quantity of housing will actually be offered if the price ceiling is binding?). (10 points) 6. If this price ceiling is binding, what are some potential outcomes that we would expect to see on the buyers' side and on the sellers' side as a result of this price ceiling? For full credit, mention the long-run elasticity of supply. (10 points)MARKET FOR RENTAL UNITS: PRICE CONTROLS The following supply and demand schedule represents the market for rental units in a large city. Use this table to create a graph of the supply and demand for rental units. Make sure that your graph is properly labeled with Supply (S), Demand (D), Price (P), Quantity (Q), Equilibrium Price (P*), and Equilibrium Quantity (Q*). (36 points) Price Quantity Demanded Quantity Supplied $500 1000 $1,000 800 300 $1,500 600 600 $2,000 400 900 $2,500 200 1200 $3,000 0 1500 Market for Rental Units in a Large City $3,000 $500 oooZ