3) Consider the market for rental housing in Yourtown. The demand and supply schedules (short-run) for rental housing are given in the table. Price Quantity Demanded Quantity Supplied :3 er month Thousands of units Thousands of units 1100 1000 77 73 700 67 65 m- 70 -i_ 500 a) In a free market for rental housing, what is the equilibrium price and quantity? (0.5 marks) b) Now suppose the government in Yourtown decides to impose a ceiling on the monthly rental price. What is the highest level at which such a ceiling could be set in order to have any effect on the market? Explain your answer. (1 mark) c) Suppose the maximum rental price is set equal to $500 per month. Describe the effect on quantity demanded, supplied, and exchanged in the rental housing market. (1.5 marks) (1) Suppose a black market develops in the presence of rent controls in part (c). What is the black market price that would exist if all of the quantity supplied were sold on the black market? (1 mark)