1:. Suppose the maximum rental price is set equal to $600 per month. Describe the effect Market for Rental Housing on quantity demanded. supplied and exchanged in the rental-housing market. Price Quantity Demanded Quantity supplied (5 per month] [thousands of units} {thousands of units V The quantity demanded will exceed the quantity supplied. The quantity exchanged 1000 60 120 equals the quantity supplied resulting in a shortage of rental housing. 900 m 110 The quantity supplied will exceed the quantity demanded. The quantity exchanged 300 an 100 equals the quantity supplied resulting in a shortage of rental housing. 7'30 90 99 500' 100 30 The quantity supplied will exceed the quantity demanded. The quantity exchanged 500 1 10 m equals the quantity demanded resulting in a surplus of rental housing. 400' 120 60 The quantity demanded will exceed the quantity supplied. The quantity exchanged equals the quantity demanded resulting in a surplus of rental housing. d. Suppose a hidden market develops in the presence of the rent controls in part {c}. What H is the hidden market price that would exist it all of the quantity supplied were sold on the hidden market? The hidden market price in this case would be 5 800 . e. How is the analysis likely to be modified ifwe consider the longrun supply of rental housing? Explain. The long-run supply of rental housing is elastic than the short-run supply because landlords and owners can easily adjust their supply. If the price ceiling persistsI their supply of rental housing. The of rental housing will owners will