Figure 5-1 is a supply and demand curve, which shows rent controls. On the y axis is rent per period. On the x axis is quantity of rental units per period. The supply and demand curve intersect at rent 2 on the y axis and q2 on x axis, to the left of q2 is q1 and q0 moving towards 0 on x axis and to the right of q2 is points q3 and then q4, which is going further along the x axis. Below rent 2 on the y axis is rent 1 and then rent 0, which is closer to the 0 point of the y axis. And then above rent 2 is rent 3 and then rent 4, going up the y axis. Reference: Ref 5-1 Figure: Rent Controls (Figure: Rent Controls) Use Figure: Rent Controls. If rent controls are set at Rent1: Question 17 options: there will be an efficient allocation of rentals. some landlords may break the law by renting below the mandated price. rental apartments may be of inefficiently low quality. new apartments will be constructed