Answer all this

The city council worries that rents have increased too much already and housing is becoming unaffordable. They consider introducing a cap on how much rent landlords could charge, equal to $1500. e) What is the name of this type of price control? Is it binding or non-binding? How can you tell? f) Re-draw your original diagram and show the rent control on this diagram. g) Calculate the new quantities of apartments demanded and supplied. Will everybody looking for an apartment find one at the price of $ 1500? If not, how many families will be able to find a rental apartment? h) Are there more families able to find and afford an apartment than before? Is the rent control helping buyers as intended? (2-3 sentences) i) Show the consumer and producer surplus after rent control on your second diagram. 2 11/27/23, 11:35 PM PDF.js viewer j) Calculate the new consumer surplus, producer surplus and total surplus in this market after the rent is being capped. Show your work. k) Compare the new CS, PS and TS (after rent control) with the ones before. Who benefits and who is hurt by the rent control? 1) Is the society overall better off when rents are being capped at $1500? Is there any deadweight loss? If there is a DWL, show it on your diagram, calculate it and explain what it represents. m) What do you think will be the effects of this rent control in the long run? Will landlords get used to it? Will more apartment become available? Will things get worse? Discuss (1-2 sentences) n) If you were an economic advisor for the city, would you advise for or against the rent control? Why or why not? (1-2 sentences) o) Suggest a different measure that the city could use to help low-income families with their housing needs. (1-2 sentences)