1. (10 points) In the episode,The One With Ross's Denial, Rachel is looking for an apartment now that Chandler is moving in with Monica. She asks Phoebe if she could move in with her but Phoebe claims to have a roommate named, Denise, who had never been mentioned before, especially since in the episodeThe One In Vegas, Part I, Phoebe mentioned that she lives alone. Given that apartments in New York are super expensive to rent and the high possibility that Denise is made-up, answer the following questions:
2. (a)How is she able to afford to live by herself while everyone else needs a roommate, specif- ically, from which regulation could she be benefiting?
3. (b)Use a supply-demand diagram to show the impact of this regulation on the market.