Problem 1 Consider the following supply schedule for apartments in a local market. a. Monthly Rent Supply Demand $2.400 1 80 0 $2.200 1 60 20 $2.000 1 40 40 $1.800 1 20 60 $1.600 1 00 80 $1.400 80 100 $1.200 60 120 $1.000 40 140 $800 20 160 $600 0 180 Draw the supply and demand curves for apartments on your Quiz Written Answer Sheet Graph. Be sure to label the axes. Assume the going rental price for apartments is determined by the market equilibrium. How many apartments will be rented? What will be these apartments be rented for? Indicate the area of consumer and producer surplus on your graph on your Quiz Written Answer Sheet Graph. Also indicate the area that represents the total cost of supplying the apartments. Next assume that a particular landlord is willing to supply an apartment only if the rental price is at least $1.050 per month (her reservation price is $1.050]. What is her individual profit in this market? Suppose the local authorities are wanting to increase the number of housed people in their community and to do this are considering a policy to limit the maximum price that landlords are able to charge for rent to $1.000. What is the impact of this policy? Who benefits from this policy? Who is harmed by it