Suppose that the demand and supply schedules for rental apartments in the city of Gotham are as given in the table below.

Monthly Rent	Apartments Demanded	Apartments Supplied
$3,250	10,000	15,000
2,750	12,500	12,500
2,250	15,000	10,000
1,750	17,500	7,500
1,250	20,000	5,000

a. What is the market equilibrium rental price per month and the market equilibrium number of apartments demanded and supplied?

Market equilibrium rental price: $ per month

Market equilibrium quantity: apartments

b. If the local government can enforce a rent-control law that sets the maximum monthly rent at $2,250, will there be a surplus or a shortage?

(Click to select)Shortage OR Surplus

...............................Of how many units?

apartments per month

How many units will actually be rented each month?

...............................apartments will be rented.

c. Suppose that a new government is elected that wants to keep out the poor. It declares that the minimum rent that can be charged is $3,250 per month. If the government can enforce that price floor, will there be a surplus or a shortage?

(Click to select)Shortage OR Surplus

Of how many units?

.,......................apartments per month

How many units will actually be rented each month?

...............apartments will be rented.

d. Start at the original (correct) equilibrium price and quantity in part (a). Suppose that the government wishes to decrease the market equilibrium monthly rent by increasing the supply of housing. Assuming that demand remains unchanged, by how many units of housing would the government have to increase the supply of housing in order to get the market equilibrium rental price to fall to $2,250 per month? To $1,750 per month? To $1,250 per month?

Fall to $2,250 per month:	units
Fall to $1,750 per month:_______________	units
Fall to $1,250 per month:______________	units