As you can see from the article in the prior problem, \"Rents Hit AlleTime Highs amid Job Growth and Low Vacancy Rates,\" some people move out as a result of rent increases, while others are ready to pay an even higher rent. Rent control adds yet another aspect by setting a ceiling on what the rental price can ultimately rise to. The supply and demand model can be used to illustrate the mechanism that leads to all these different market outcomes. Consider the market for rental properties in the Inland Empire in Southern California. Suppose that while employment increased by 22% in the Inland Empire, the average rent has increased by 20%. {Assume for a moment that there are no rent control regulations.) djusf the Following graph to lllustrate the rent increase by elther using the black point (' cross symbol) or by shiftlng the supply and demand curves. int: Determine whether this scenario leads to a shift in the demand/supply curve or a movement along the demand/supply culve. The Market for Rental Properties in the Inland Empire 2000 O 1000 Sunplv ,_' 1500 Demand .2 E g 1400 E] a; u, 1200 Supply '5 god 1000 .1. a Adjust the following graph to illustrate the rent increase by either using the black point (cross symbol) or by shifting the supply and demand curves. Hint: Determine whether this scenario leads to a shift in the demand/supply curve or a movement along the demand/supply curve. The Market for Rental Properties in the Inland Empire 2000 O 1800 Supply 1600 Demand 1400 1200 Supply 1000 RENTAL PRICE (Dollars per month) 800 New Rent 600 Demand 400 Vacancies Demanded with Price Control 200 0 0 100 200 300 400 500 600 700 800 900 1000 Vacancies Supplied with Price Control QUANTITY (Number of vacant units) 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. Hint: Determine whether this scenario leads to a shift in the demand/supply curve or a movement along the demand/supply curve. 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 $1,200 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 of vacant units in the market