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I am not able to solve this case study, can you help me, it's from my sample last year question paper Q. The situation described

I am not able to solve this case study, can you help me, it's from my sample last year question paper

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Q. The situation described below has happened in the fictitious city of Demilonia. Read the situation. Identify the problem and its solution. Then list the present, future, intended, and unintended consequences of that solution. Situation: People complain that they can't afford to live because rent is too high. The Demilonia City Council enacts a rent "ceiling, " limiting the maximum amount of rent a landlord may charge for certain properties. Most Demilonians can afford the new dirt-cheap "ceiling" rate. Eventually, landlords realize they have no need to maintain the restricted properties-they don't generate any income, and the people living there can't afford to live anywhere else. The landlords completely ignore the restricted properties. They focus all their time and money on nicer, profit-yielding investments. After ten years, the rent-controlled buildings are falling apart. They're unsafe and unsanitary and the only tenants are drug dealers.a. Identify the trade-off for suppliers and consumes of rented houses in the city. b. Why the rent-control has failed? Provide economic reasoning. c. What would be the opportunity cost for free market regime in rented living places in the city? d. Suggest three policy measures for the city authorities to find out the solution of the problem. e. Are there any underlying assumptions in the situation depicted? If yes please specify

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