Course: Microeconomics - Supply and Demand (Microeconomics Book - Robert Frank) The demand for apartments is P = 1,200 - Q, while the supply is P = Q units. The State imposes rent control and sets the maximum rent at P = US$300 per month. Assume that demand grows in the market to P = 1,400 - Q. Answer: (a) How does the growth in demand for apartments affect excess demand? b) What price would the state have to set to keep excess demand at the same level that existed before demand grew to P = 1,400 - Q?