5. Consider the following supply schedule for apartments in a local market Rent (per month) $ Quantity of apartments supplied 800 100 700 80 600 60 500 40 400 20 300 0 3

a. Draw the supply curve for apartments. Be sure to label the axes.

b. Suppose the going rental price for apartments is $500 per month. Indicate the area that represents the area of market producer surplus.

c. Next assume that a particular landlord is willing to supply an apartment only if the rental price is at least $450 per month. What is her producer surplus in this market? Use a graph to illustrate your answer.