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Since 1948, George Town's heritage buildings had been protected under a Government Rent Control Act. A 1992 census showed that Penang had 12,453 rent control premises with 8,259 located in the heart of George Town. Many tenants have moved out of the old houses since the repeal of Government Rent Control Act in year 2000. The inner city population may have dwindled since the repeal of the Rent Control Act but a new type of habitants has been flocking to George Town. Old buildings, some dilapidated , have been converted into 'birdhouses' to lure swiftlets to build bird nests, a highly prized commodity among the Chinese. Many of the pre-war buildings are located at George Town's historical precinct in Jalan Masjid Kapitan Keling, Armenian Street, Acheen Street, Carnavon Lane and Malay Street. A Check with the Penang Municipal Council showed that at least 140 houses have been registered for bird nesting activities on the island. Many more are believed to be operating without permits due to the lucrative returns. KOMTAR assemblyman, Mr. Lim Gim Soon said bird. nesting activities started after many tenants moved out of old houses in 2000 following the decontrol of pre-war buildings. At its peak some five year's ago, he said there were more than 80 houses in his constituency converted to harvest edible bird nests. This industry is still going strong because he adding the monthly rental for a pre-war house in his constituency was available from as low as RM300 a month. Source: Tan Sin Chow (2007), Swiftlets Flock to Inner City, Department of Veterinary Services of Perak, Malaysia. http://www.jphpk.gov.my/English/Apr07.20d.htm Answer the following questions based on case study entitled "Swiftlets Flock to Inner City" 1. With an appropriate diagram, elaborate the price control mechanism that the government has implemented in the business economics. (15 marks) 2. What mechanisms allocate resources (subsidies) when the price of a goods/services is NOT allowed to bring supply and demand into equilibrium?. Justify. (10 marks)