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As a result of the 20% rent increase, the number of vacant units demanded to units. Adjust the previous graph to show the effect of
As a result of the 20% rent increase, the number of vacant units demanded to units. Adjust the previous graph to show the effect of the increase in jobs. The increase in jobs results in a new equilibrium rent of $ per month and a new equilibrium number of vacancies of units. Now suppose that the state of California introduces rent control by setting the maximum rent at $1,800 per month. On the previous graph, use the grey point (star symbol) to indicate the number of vacancies demanded. Then use the tan point (dash symbol) to indicate the number of vacancies supplied. As a result of rent control, there is a vacant units in the market
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