Consider the long-run housing market in Question IV but assume there was no rent control: Long-run Demand curve is given as:R = 1000 - 0.5 H

Suppose the initial rent was set at R = $800

(1)Estimate the initial consumer surplus by drawing a diagram: ____________________________

Suppose the rent went down to the level of R=$600

(2)Estimate additional consumer surplus to initial consumers: _____________________________

Estimate consumer surplus to new consumers: __________________________________________