1. Suppose the supply curve for X-mas trees is completely inelastic any given year. Due to COVID-19, the Mayor in Vienna is considering imposing a price ceiling below the market-clearing level. Would a deadweight loss result? Use a diagram to explain your answer.

2. Rent controls policies are common in urban areas. Are rent controls typically price ceilings or price floors? Briefly explain two ways that economists expect rent controls to affect the urban housing markets in the short-run.