Land-Use Regulations. Suppose the rental market in Eugene is perfectly competitive and can be characterized by the following equations: Demand: = 20 Supply: = (1 + ) where R is the rental price, and k is the level of land-use restrictions in Eugene. For now, we will not assign a value to k) Now suppose there is one supplier of housing, and thus the market is a monopoly. Recall that monopolists can set prices and supply a quantity where marginal revenue equals marginal cost. Compute the equilibrium rent and quantity when = 2. How do the effects of a price ceiling differ when we have a monopoly? Are renters better off