Supply/Demand with Government intervention Problem Set An underdeveloped country decides to set a price ceiling on rental apartments so it can make sure that rents is affordable to the poor. The conditions of demand and supply are given below (which are before the price ceiling). Remember that when QdQs we have a shortage Price ($) Qd Qs Difference between Qd and Qs Surplus/Shortage/Equilibrium (inventory) 400 18,000 12,000 500 15,000 15,000 600 13,000 17,000 700 11,000 19,000 800 10,000 20,000 A) Fill the table above. B) Draw the supply and demand curve showing equilibrium. C) What are the equilibrium price and equilibrium quantity before the price ceiling? . D) What will the excess demand or the shortage (that is, quantity demanded minus quantity supplied) be if the price ceiling is set at $400? $600? $700