Answer the question below:

The rent control agency of New York City has found that aggregate demand is OD =1608P. Quantity is measured in tens of thousands of apartments. Price, the average monthly rental rate, is measured in hundreds of dollars. The agency also noted that the increase in Q at lower P results from more three-person families coming into the city from Long Island and demanding apartments. The city's board of realtors acknowledges that this is a good demand estimate and has shown that supply is 08 = 70 + 7P. 1.) If both the agency and the board are right about demand and supply, what is the free market price? What is the elasticity of supply and demand at this price? What is the change in city population if the agency sets a maximum average monthly rent of $300 and all those who cannot nd an apartment leave the city? 2.) Suppose there are not price controls in New York City when the coronavirus outbreak begins. People start leaving the city, the demand for housing falls to OD =130 8P What is the new equilibrium and the new elasticities of supply and demand at equilibrium