James lives in Los Angeles and gets a rent-controlled apartment for $500 per month. The market rent on such an apartment is $4000 per month. James by his own valuation sees the apartment as worth $3000 per month and will be happy to pay $3000 per month. If he stays in the apartment, how much consumer surplus does he enjoy?

b) If he illegally subleases his apartment to Jaime on the black market for $3500 per month and instead rents a $3000 apartment, is he better off or worse off than if he obeyed the law? Use economic concepts to explain your point of view. Response needs to be detailed and in depth.