General Information:This question has 8 blank spaces.12 points in total.

Instructions:Report all monetary values up to 2 decimal places.Do not use any commas.Where applicable, use only the words/phrases provided inred

The rent control agency of large city has found that aggregate demand for two-bedroom apartments isQ_D= 160 - 8Pwhere quantity demanded,Q_D, is measured in thousands of two-bedroom apartments.Price,P, the average monthly rental rate, is measured in hundreds of dollars.The agency also noted that changes in the quantity demanded results from three-person families coming into or leaving the city from the neighboring suburbs and demanding apartments.The city's board of realtors acknowledges the agency's research and states that their findings is a estimate of the demand for two-bedroom apartments in the city.Furthermore, the board of realtors has shown that supply isQ_S= 70 + 7Pwhere the quantity supplied,Q_Sis measured in thousands of apartments.

1.Given the market environment, what is the equilibrium price and quantity of two-bedroom apartments?(4points)

At equilibrium, the rental rate is $_____and the quantity of two-bedroom apartments rented is_______thousand per month.

Consider that the rental agency sets a rent control of $300(that is price = $3 for calculation purposes)on two-bedroom apartments in the city.

2.Given the rent control, what is the market outcome?(2 points)

At the rent control of $300, the quantity of two-bedroom apartments rented is_______thousand per month.

3.What market adjustments may be observed in the long run if the rent control remains in place?(6 points)

Complete the sentence by entering one of the following phrases or a numerical value (0.00 is acceptable) in the blank space provided:

in the first blank space:increase|decrease

in the second blank space:seeking to rent a two-bedroom apartment|not able to find a two-bedroom apartment

in the third blank space:enter|leave

in the fourth blank space:an increase|a decrease

in the fifth blank space: a numerical value

Over time, demand may_________as families________would_________the city.Ceteris paribus, the change in the city population would be_________of________people.