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

Monthly Rent	Apartments Demanded	Apartments Supplied
$3,250	12,500	17,500
2,750	15,000	15,000
2,250	17,500	12,500
1,750	20,000	10,000
1,250	22,500	7,500

Instructions: Enter your answers as a whole number.

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

Market equilibrium rental price = $

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) Surplus Shortage

Of how many units?

apartments per month

How many units will actually be rented each month?

apartments

c. Suppose that a new government is elected that wants to keep out the poor. It declares that the minimum rent that landlords can charge 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 Surplus

Of how many units?

apartments per month

And how many units will actually be rented each month?

apartments